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.