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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Checklist “Factor Financing”, everything you need to know.

When deciding on which factor finance company is best for your business financing, implement this checklist to find out everything you need to know before factoring. It’s recommended that you get a few competitive offers to ensure you find the best factor financier match for your growing business.

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CHECKLIST | FACTORING

  1. Use Factor Bid to compare invoice finance offers.. Free!*
  2. Use Factor Bid to quickly match your business with factors that specialize in your industry!
  3. Does the factor have experience in your industry?
  4. How long is the factoring agreement?
  5. How fast do you get paid?
  6. Do you offer non-recourse agreements?
  7. What is the benefit of a non-recourse agreement?
  8. How will you communicate with the factor and what type of reports will you receive?
  9. How often will you and the factor need to meet or talk each week?
  10. How quickly does the factor collect debts?
  11. How does their debt collection process compare with your debt collection system?
  12. What is the factors idea of a ‘quick response’; hour, half-day, day, week?
  13. How do you get a customers credit limit increased?
  14. What happens if a customer breaches their credit limit?
  15. What accountability is in place if the factors performance is unsatisfactory – for example will you be penalized and forced to pay charges for debts the factor fails to collect?
  16. How will the factor handle debt collection? What is the process and methods used?
  17. When will statements be sent out?
  18. What happens if a customer disputes an invoice?
  19. How will the factor follow up with overdue debts? Daily, weekly, monthly?
  20. Does the factor send certified letters, make phone calls or send emails when payments are overdue by the debtor?
  21. What will happen when a customer’s payments are seriously overdue?
  22. What format will the final reminder take and when will it be sent out to the debtor?
  23. Does my company always get a copy of all communications, collections and final notices sent out to an overdue customer?
  24. What further action will the factor use to collect overdue debts?
  25. Will a collection agency be used to collect overdue debts?
  26. Will legal action be taken to collect overdue debts?
  27. What would happen if you wanted to change factors?
  28. Is there a notice period to stop factoring? If yes, how long (3 months) or longer?
  29. Is there a fee to stop factoring? If yes, what is that fee?
  30. What if you want to change the services provided by the factor?

Make sure and read the factoring agreement and ask questions about terms and conditions that you’re not familiar with or do not understand. What will it take to end the factoring agreement is their performance is unsatisfactory?

One thing to consider, if you’re not making money and increasing your business by then either is your factor finance company. Factors want your business to grow. They make more money in getting your fast cash if you’re more busy then when you started. Take advantage of access to immediate cash and use the factors money to grow your business instead of standing by while your customers use your money to grow theirs!

If you have additional questions that should be added to the checklist for factor financing, add them in the comment section for readers to review. Thank you.