What are the benefits of Invoice Funding?
82% of small businesses fail due to lack of cash flow and this can be the result of many reasons. For example, clients may take a long time to pay for your goods and services. Combine late payments with the impact of COVID-19, businesses are feeling more squeezed for cash than ever. But instead of “dealing” with the problem, invoice funding can help alleviate some of your cash constraints. A couple key benefits to invoice funding include:
- Instant Funds for Growth: instead of waiting 60/90+ days to be paid, a lender can move money into your pockets in as little as a few days (provided with eligible invoices, of course). These funds can be used to expedite pay roll, hire a new worker, launch a marketing campaign, and many more!
- Save Time and Effort: By limiting time spent following up and collecting payments, you have more time and energy to focus on building your business and positioning yourself for growth.
- Zero Capital Requirement: Unlike traditional bank loans, invoice funding does not require good credit or collateral to qualify. You simply need eligible accounts receivables/invoices that can be processed by a lender.
- No Debt: since invoice funding is not a loan, it does not need to be added to your liabilities on your balance sheet!
- Simple Application Process: the application required to establish a partnership requires basic business information. No financial statements, business plans, or projections needed.
- Flexible Terms: There are no long-term contracts, minimums, or maximums to the amount you can fund.
- Professional Receivable Management: Save time, reduce expenses, and improve the turn around on your receivables with professional management. Lending companies will handle the paperwork, processing, and collection of payments on your invoices.
If an invoice funding program sounds like it may be a fit for your business, please feel free to check out our online application or email clientsupport@kompassfunding.com with any questions.
