One of the biggest challenges facing small and mid-sized businesses is cash flow. Many are the times when this category of businesses land on opportunities but are not in a position to fulfill them. In fact, it has been established that this has led to the collapse of many of these businesses even when they are still making profits. To stand out, it is important for a business faced with this type of challenge to consider the options available to salvage the situation.
Invoice factoring services is a brilliant way of financing a business opportunity that would have otherwise been lost or would have strained a business while trying to fulfill it. This article will look at some of the things to consider when seeking business credit funding.
Fast turnaround time
With some of the business dealing, there is practically little time to either have the deal or break it. As a result, for a business to be confident that opportunities will not be lost, it is important to have an invoice factoring services partner with fast turnaround time. Preferably, within the same day would be a great idea and work with the majority of the business deals. However, as a company seeking to have these services, it is important to establish that the company you are supplying to does qualify for accounts receivable funding.
Seek for a direct lender
To guarantee ease of doing business, it is important to deal with a direct lender as opposed to working with an invoice factoring broker. This has to do with many aspects of the business but the biggest as to do with having a straight line of communication. This is unlike in situations where you are dealing with a broker as he has to later consult with the lender thus making the invoice factoring services process to take long and there might be a miscommunication on some of the aspects of the deal.
A growth-oriented lender
Fulfillment of one business opportunity leads to the creation of even more opportunities. It is important that the lender handling your invoice financing is equally enthusiastic about the growth of your business. When this is the case, your business is in a position to confidently seek more opportunities, and this leads to an exponential growth of your business.
At their infancy, businesses are quite vulnerable and in most cases lack funding. However, there is great enthusiasm by the founders and those working for it in seeking new opportunities. If this is supported, there is a big chance of the businesses succeeding. However, due to the risks associated with financing dealings from startups, the majority of the lenders shy from working with them. As an owner of a startup business, it is important to be on the lookout for a lender that will support your vision and offer factoring services to enable the business growth.
Requirements of factoring
Typically, with receivables funding, the stipulations are much lesser and so is the interest. Nevertheless, different lenders have different requirements, and it is quite important to be aware of their requirements for enhanced relations when doing business. Clear communication should be exercised as well as full disclosure of what will be due to the firm undertaking the invoice factoring services. With this done upfront, the process of conducting business is much smoother, and there is an element of trust and the peace of mind that comes with it.
There is a need for constant communication throughout the business transaction. This is from the inception of the deal all the way to when the invoice is settled. To facilitate this, there is a need for a clear channel of communication and dedicated customer support representatives on the lenders’ side. This is particularly so when discussing the details of the financing.
With us as your lender, we will provide all the above and have your account setup within 48 hours for the initial funding. For consequent receivables funding, you can expect fulfillment within 12 hours of receiving your invoice schedule. With this arrangement, we allow you to concentrate on doing what you know best as we worry about the finances.