Grow your Small Business with financing help

How to grow your small business. Small to Mid-Sized Businesses are always looking for strategic ways to grow and become more profitable.

A good rule of thumb, make sure you have your capital contribution locked down as one of your very first preparation steps.

Funding can come from a variety of sources, including personal funds, a bank, outside investors and your accounts receivables.

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The First 3 Funding Options You’re Most Likely Already Familiar With:

  1. Personal Funds – Reach into your savings to fund your business growth, hire employees, cover day-to-day expenses and so on.
  2. A Bank – Drive down to your local bank, fill out paperwork and wait to see if you qualify for small business financing.
  3. Investors – Work up a business plan, executive summary, proforma, 5 – year profit and loss projections and start shopping your idea around to potential incubators and/or angel investors.

But number 4 you may not be as familiar with. Using your accounts receivables (money your customers already owe you) to finance your business growth. Get paid faster by reinvesting your earnings sooner with invoice financing.

Invoice financing has been around forever it seem, and small startups to huge companies like Snapple use invoice financing to increase their daily working capital and grow their businesses more quickly.

How Does Invoice Financing Work?

It’s pretty simple really. You invoice your customers for payment, and typically they send you a check within 30-45 days. What if you could instead invoice customers and get paid within hours! With invoice financing you can!

Invoice financing uses assets from your business (your accounts receivable invoices) to get your business immediate cash flow to hire additional employees, afford business expenditures, cover payroll, service new accounts and keep your business competitive in your industry.

If you’re not utilizing your invoice receivables as assets and your competitors are, they may be getting a leg up on you by affording them an opportunity to service new larger customer contracts and extend terms to those larger customers.

Don’t be forced to use your own profits to fund your customers business growth when offering net-30 to net-45 terms, instead use an invoice financing company and their money to fund your terms and strengthen your customer business relationships.

An invoice finance company will buy your invoices for immediate cash, so you get your money immediately and can reinvest in growing your business faster instead of waiting for payments while your customers use your profits to grow.

If you’re comfortable with the idea of selling your accounts receivable invoices for a small discount, in order to get paid immediately, then you should explore the benefits of invoice financing.

Get A Few Offers To Buy Your Accounts Receivable Invoices For Cash!

It’s recommended that you get a few offers when deciding which invoice financing company is right for you. You can visit www.factorbid.com and within a few minutes, you’ll have a few competitive offers from invoice finance companies to purchase your accounts receivable invoices for immediate cash. Factor Bid is free online business resource that you can use to get competitive offers from finance companies. You’re under no obligation to use any of the companies competing for your business. Factor Bid is completely free.

Get the knowledge and leverage you need to negotiate the best financing deal for your growing business at Factor Bid.

On The Go – Grab Factor App For Fast Invoice Financing Offers!

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Factoring (invoice finance) what is it and how to get the best deal

Accessing business capital for businesses of any size can be a stressful undertaking. Traditional bank loans can take weeks even months to become available, and even alternative lenders may charge high interest rates for the convenience of fast cash.

When it’s all said and done getting access to ongoing business capital to run your business can be challenging. If you take into account all the paperwork and time involved in setting up a relationship with a traditional lender, not to mention -it may take months before you even get an answer of whether or not you’re approved.

If you’d rather not have to wait and go through all the hassle of traditional loans and le, you may want to consider factoring (invoice financing).

WHAT IS FACTORING

Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount. A business will sometimes factor its receivable assets to meet its present and immediate cash needs. (see full details at wikipedia)

Factoring is an alternative method of financing that allows business owners like you to sell your invoices, aka your accounts receivables for immediate cash!

HOW TO GET THE BEST DEAL

If you’ve made up your mind and are ready to start factoring your invoices for immediate cash, visit www.factor.bid to get started. At Factor bid -factor finance companies compete for the opportunity to buy your invoices. You’ll get a few offers from the top factor finance companies. When factors compete to buy your invoices, You Win!

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Not all factors are created equal. Different factors specialize in specific industries, and can’t always give you the best deal in your industry. Trying to locate a few factors online that do specialize in your industry is time consuming and can be a frustrating experience.

Factor bid quickly matches your submitted invoice with a huge database of factors that specialize in your industry. You’ll be contacted by a few of the top factors with their most aggressive offer. With Factor bid you’ll get the knowledge and leverage you need to negotiate the best deal when choosing your new factor finance company.

When factors know they’re competing to earn your business (factor bid) they’re going to give you a competitive offer when offering to buy your invoices. Factors want your ongoing business for as long as you need cash flow to grow your business, cover daily expenses, cover payroll, buy supplies and even invest in new business opportunities. If you contact a factor on your own by calling them or filling out a form on their website, you’re only going to receive one offer, instead of a few competitive ones!

Having access to cash within hours of invoicing a customer is a smart business practice. Even if you don’t need cash now, get set up with a factor so when you do need it, you can get paid immediately and access your cash, instead of waiting weeks or even months like you would have to with traditional bank loans.

HOW FACTORING FUELS GROWTH

Business owners with capital tied up in large purchase orders can benefit from factoring. For example -If your business doesn’t have cash to purchase supplies needed to fill an order or money to pay the employees salaries to fill new orders, then factor financing can help. If your outstanding invoices are making it difficult to keep up with new orders and even putting your growth trajectory at risk, then find out how factoring your invoices for immediate cash flow can help keep your business on the track.

Factoring your open receivables will unlock cash trapped in your invoices. You’ll also receive help from factors in simplifying your accounts receivable process. There is no collateral required to work with a factoring service, and the factor uses your customers credit rating and payment history, not yours. So if you’re a new business and are thinking you won’t qualify for financing with a factor, you’re wrong. Factors use your receivables (which are an asset) in order to get your the cash you need to make important business decisions today. Stop waiting 30, 45 or even 90 days, get paid as soon as today!

CONCLUSION

Factoring may not be the right fit for your business. However, if your day-to-day operations are suffering due to large cash flow gaps from outstanding invoices, then the option of getting a few offers for your receivables should be considered.

When you use Factor bid to connect with factors that specialize in your industry, you’re under no obligation to factor. You’ll get a few competitive offers from factors that are eager to earn your business. You decide if the offers are right for your business and then use the competitive offers to negotiate the best deal when accessing immediate cash for your business.

You want to work with someone that you trust and is transparent. The best way to do this is to use Factor bid. When factors know they’re competing for your new business, they’re going to be more likely to give you their best offer right out of the gate, because they know if you’re using Factor bid, you’re getting competitive offers at the same time.

It’s important that you view factoring as a financing strategy conducted over a period of time. Within this time, realize that factoring can help your business expand or recover while achieving long-term goals. The potential downside to any source of financing is that the fees may add up over time, and end up being more expensive than a traditional bank loan; that uses your home or some other large asset as collateral. However the higher cost upfront, may be worth it for immediate access to cash you need to secure new customers, cover business expenses and pay employees that are working to make your business more profitable. It may also be worth it not to use your personal savings and/or assets, like your home as collateral. Factoring your invoices don’t require any form of personal guarantee and may be just the solution to help your business reach the next step in your growth plan.

FACTORING TYPES YOU SHOULD KNOW

There are two classifications of factor finance services:

Non-Recourse factoring: NonRecourse factoring releases the business owner from liability for delinquent receivable accounts. In a non-recourse agreement the factor is taking on more responsibility and legwork in collecting outstanding owed receivable money. This type of factoring requires more attention to your account, more in-house and outsourced resources they may need to use to collect the debt, therefore is more costly. Also the creditworthiness of a business’ clientele will be more closely scrutinized in nonrecourse factoring.

Recourse factoring: Recourse factoring is the most common type of factoring today. Factors fund your invoices but require you t provide a refund on any invoices that remain unpaid past a certain amount of time, that they have fronted you money on. Since the business owner assumes the risk with recourse factoring, there is a wider range of more competitive rates and a lower cost to you to access immediate cash as needed for your business.

Bottom line is, business owners want to get paid for their work right away. The job isn’t considered complete until the customer has paid the invoice and the check has cleared the bank. So to keep your cash flow predictable and your stress levels low, visit Factor bid, submit an open invoices from your business and within the hour you’ll have offers from the top factor finance companies, eager to buy your invoices.

Once you’ve selected the best offer from the factor finance company that best fits your needs today, you’ll have a savvy partner (factor finance company) that will help you streamline your accounts receivable collection process, check the credit of new potential customers you’re considering doing business with and access to cash within hours of invoicing customers.

Get going on increasing cash flow for your business today, Get Factor.bid

Is your business mobile? Download Factor App and submit your accounts receivable invoices via your Smartphone or Tablet.

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Factor App for your Android Smartphone

Factor App for your Apple iPhone

Invoice financing, also know as factoring, helps companies get cash in exchange for their outstanding accounts receivable invoices.

Could your business benefit from an injection of new cash flow? Invoice financing, also know as factoring, helps companies get cash in exchange for their outstanding accounts receivable invoices.

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How does invoice factoring work?

There is no big secret to factor financing (selling your invoices for immediate cash). To access invoice financing a business simply needs to providing goods and/or services to other creditworthy businesses on terms (invoicing)

What does the typical Factor Financing cycle look like for your business?

  • Once you’ve completed your service or delivery of goods you’ll invoice customers as usual.
  • Depending on how much capital your business needs to access, will determine which customer invoices you decide to factor.
  • You’ll submit your open invoices to the factor along with any additional supporting docs you’ve agreed to provide for specific customers.
  • Within 24 hours of verification, the factor finance company will wire or ACH up to 85-95 percent of the gross invoice to your account.
  • In the normal course of business, check from your customers will continue to be payable to your company, however may be mailed to a specific mailing address that your factor finance company has set up. There are also other ways a factor will accept payments on your behalf – this is an important detail you need to discuss with your new factor finance partner.
  • Once the factor receives payment from your customer (in full) they will post it to your account. They then remove the amount that was initially advanced to you (to cover what they fronted you) plus their agreed upon fee.
  • You’ll receive daily comprehensive accounting information so you can review the factors advances and customer payments.
  • You’ll also have access to a suite of tools that can help you check the creditworthiness of potential new customers you’re considering working with.

Factoring your outstanding invoices is a symbiotic relationship for your company and the factor finance company. Factoring is not like a bank loan, where you need to put up personal equity or credit. The factors are using your receivables as collateral and the more your business grows the better you and your factor finance company does.

Also don’t forget that factoring your invoices and getting paid within 24 hours for your open invoices reduces your liability in collecting outstanding, late or non-payments from your customers. Make sure you talk to your factor finance company about non-recourse factoring vs recourse factoring before deciding which type of agreement is best for your business needs.

Now that you’re ready to start factoring – visit www.factor.bid to get a few offers from competing factor finance companies for your open invoices. When factors compete you get the best deal. Factor bid is free, enjoy!

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www.factor.bid

 

Is my business a good candidate for factor financing (invoice finance)

How do you know if your business is a good fit for factor financing?

Visit www.factor.bid

  1. Submit an outstanding invoice
  2. Get competitive offers from factors to buy your invoices
  3. Get paid as soon as today for your open invoices

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YES YES YES!!!  You are a great candidate for factoring if:

  • Upon providing a product or service, your client has an extended amount of time to send you payment (30, 60, 90+ days).
  • You have slow or late pay clients.
  • You cannot carry the financial liability of a non-paying client.
  • You require money down for a product/service that will take an extended time to complete before final sameday payment.
  • You have multiple open accounts receivable invoices each month.
  • You have open accounts receivable invoices and need to unlock that cash NOW.
  • Your office is waterlogged by all the time involved in administering/collecting your open accounts receivable invoices.
  • You have no recourse in place for non-paying customers. (like collections assistance, lawyers on retainer and/or a ton of free time with nothing better to do)
  • You have open accounts receivable invoices, but your credit is less than perfect.

MAYBE LATER?  Factoring might not meet your needs if:

  • You have a billion dollars in cash just sitting on your office floor begging to be used.
  • You do not have any open accounts receivable invoices at this time, but hope some new customers call today.  Bookmark Factor Bid on your Internet for when they do!
  • You get paid COD (cash on delivery) for your product/service.

Once you begin to factor, you will find you can:

  • Cover day-to-day business expenses
  • Cover payroll
  • Cover emergency expenses
  • Hire more employees to help your business grow faster
  • Purchase additional supplies and equipment (in bulk, at a discount)
  • Secure new customers
  • Grow your company
  • Lessen your liability

As you can see, factoring is the fastest and easiest way to unlock cash that’s trapped within your accounts receivable invoices. Stop financing your customers, while their businesses grow faster and you’re stuck holding the bill, literally!  Simply go to our website https://factor.bid to upload your invoice.  Within a few minutes, you’ll get competing offers from factor finance companies eager to earn your business and buy your receivables for immediate cash. 

On the run – Grab Factor app for your smartphone from the apple app store or google play store!

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Factor App finance mobile app for Google Android Smartphones

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