In today’s credit-driven market, small businesses are often seen offering an extended credit to their existing clients. A credit extension policy by small-scale businesses affects its financial position quite negatively. Facing a crunch of capital, they say ‘no’ to new assignments. Also, the fear of not being able to fulfill existing projects starts building up. Unwillingly, they have to turn away business.
Until a business is able to take up a job and complete it, it can never get out of financial crisis. And, while they take the pain of getting the delivery complete on time, the wait for payments is sometimes unending. This delay in cash flows compresses working capital and becomes a vicious chain, which makes business difficult.
Solution - Accounts Receivable Financing
When a business intends to take up a new task, they need cash flows to equip themselves. However, business owners often fail to realize that they still have a liquid asset in the form of accounts receivables, which can fetch them instant funds. Getting your receivables factored provides an instant supply of cash and gives you confidence to take up new assignments. All you need is outstanding invoices from your customers with good credit score. Also, you need not have to worry about performance history or low credit scores.
Startups and small businesses in Florida are now banking on invoice factoring to generate constant supply of funds with the help of reliable invoice factoring companies in Florida. You can get up to 90% of the funds in advance and the factor will look after the collection part.
Take up New Assignments Confidently
If you are unable to fund your operational requirements, it will hit back your business badly. Factoring your receivables is an excellent alternative when you want to take up more jobs. With a flexible funding source, you can confidently keep your production cycles running and deliver on time. Factoring gives you the privilege of generating instant capital at the cost of a nominal amount of fees. This could be your best bet if you do not have a strong credit policy, but still want to extend credit to your clients.
Let’s face it - being short of capital is what every business faces today and you should know how to deal the situation smartly. Factoring gives you the courage to open your doors for new businesses without having to worry about funds.