So you’re in business and you have expenses, welcome to life, thanks for checking in. Did you know you can free-up money that’s been tied up in your accounts receivables? Yep, your receivables are considered an asset and factor finance companies are willing to buy them at a discount of their face value.
If you didn’t start your business to become the financial arm (Net 30-45 terms) of your customers, while their business’ thrive and grow quickly on your dime, then it’s time you discovered factoring your accounts receivable invoices for immediate cash.
[ To watch a quick YouTube video on how to get a few offers from competing factor finance companies to buy your open accounts receivable invoices Click Here ]
Low Risk Business Idea that is Applicable, even Thriving in 2016
Congratulations, you’re an entrepreneur. Now what!? You are passionate about your ideas and have created an amazing product and/or service to be proud of. But the initial inspiration of going into business for yourself is quickly slowing, even being derailed by the challenges small businesses face managing their predictable finances. Indeed, to be competitive and stand apart from the competition, having cash on hand to spend will allow you to keep your dream of owning your own business alive, but for how long? Positive cash flow during the critical initial phases of growth and exposure can be the difference between living your dream and/or dealing with a real-life nightmare!
*Fast, Simple and Confidential – Business Financing (Factor Bid)
Factor bid matches business owners with factor financiers looking to buy their open accounts receivable invoices. Take the hassle out of funding your business!
If you’ve ever thought about visiting your local bank to get a business loan.., borrower beware and continue reading…;
Many new business entrepreneurs are unable to secure a loan at their local bank due mainly to qualification criteria. Business loans are typically only available to established businesses with at least two years of banking history and substantial assets that are used as collateral against a new business loan. Unfortunately most of us have to learn the hard way and after wasted efforts and time invested, many business owners will be denied the much needed funds to grow a healthy new business.
So the question now becomes: What can I do to acquire working capital (cash readily available for my business, today) without the hassle and lengthly amount of time invested that goes into taking out a traditional loan or even some other high risk option?
The answer to this question is Accounts Receivable Factoring. To understand if your business is eligible for factoring, ask yourself this;
1.) For The Business Owner: What do we give away to our customer?
Whether it be specialty cupcakes or a consulting service- all businesses will sell either a product, service, or a combination of both to generate sales. In layman’s terms “it takes money to make money!”
2.) For The Business Owner: What did we get in return for our products/services from the customer?
Most of us are familiar with cash. We like cash, because we can spend it how ever we need to in order to keep moving ahead in business. But there are other forms of payments a business may use to acquire payment in exchange for the sale of a product or service they provide. One of these methods is called “invoicing” which offers you customers terms and enables them to pay for goods and/or services at a later date in time (typically called a Net30 or Net45, etc. When invoicing occurs, the business owner creates an asset called an (accounts receivable) for the customer as a promissory note to pay at a later date. This form of payment is known as accounts receivables invoices and is categorized as an asset on the business balance sheet.
So now that we know we can unlock capital that’s being held hostage in our accounts receivable invoices, what’s the fastest and easiest way to find a factor finance company to buy my accounts receivable invoices for the best possible deal.
Glad you asked -Smart business owners trust Factor bid to get a few competitive offers from factor finance companies to buy their open accounts receivable invoices, for immediate cash! Factor bid is simple, easy to use and gets you the knowledge you need to negotiate the best deal when deciding which factor finance company is best for your company.
Factoring has so many benefits besides just lowering your risk in collecting on open and outstanding invoices. For example; you’ll get years of experience when you partner with a factor finance company, to help streamline your accounts receivables process and even professional advice on how to grow your business more efficiently, while accessing tools that keep your business out of trouble and away from other high risk business partnerships. See a factoring company has your best interest in mind. Why you may ask. Well simple put, the more new customers you acquire, the more new invoices you sent and ultimately the more money you generate the better, both you and your factor finance partner do.
If a factor finance company can help you increase your bottom line, and the increase is greater than their small fee for accessing immediate cash flow for your business, then the relationship makes sense. For example, if you’re netting 10% a year in your business, and a factor ends up costing you 2-3% of your total sales annually, but the next year your business starts seeing a 14%-16% percent net, then you’re making more money than before you started factoring your invoices. Plus your business is becoming more efficient, and you’re getting more work done in less time thanks to some smart bookkeeping ideology your factor finance partner is helping to implement within your business practices.
The take-away from this helpful article is your accounts receivable invoices are considered an asset and should be recorded as an asset on your financial statements. Why does this matter? It matters because your accounts receivable invoices can be used as a tool to generate cash from third parties (factors) who are interested in purchasing the open invoices.
To get started learning more about invoice factoring (invoice finance) visit www.factor.bid and watch our 30 second video. If you’re not dead sure exactly how factor bid can help you get the best deal when financing your open invoices, then call us direct at (650) 924-3520 and one of our associates can help get you set up to receive competitive offers for your outstanding invoices. It takes about 2-3 minutes to submit an invoice and get the ball rolling on getting immediate cash for your receivables.
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