All Invoice Financing Solutions are not the same.
If your business is short in the cash-flow department consider outstanding invoices as a great source of liquid capital.
Let's say you had just recently performed some great work for a client and it is time to get paid. When you agreed to the work the client stated that they pay on a 30 day invoice. At the time it didn't seem like that big of a deal you had just finished a previous job and had some cash in the bank. However as it always happens you were hit with a big bill and you are now in need of that capital to help purchase supplies for your next project.That 30 day invoice can be turned into cash thru the services of an Invoice or Accounts Receivable Finance Company. This very problem is why companies exist that will finance your outstanding invoices. Lenders care less about your borrowing history and more about those invoices you’ve got outstanding or coming up.
Some finance companies do not discriminate in the size of the invoices you would like to submit for financing, and some have minimums. Finding an Factoring Company that is flexible in the size of invoices they will finance can be a key factor in determining a future financing partner.
The advantage of invoice financing is that you get to cover your cash flow shortages and having a little breathing room when it comes to payroll or taxes or whatever may come up can be a big relief of stress when worrying about day to day finance needs.
Invoice Financing vs Invoice Factoring. Invoice financing and factoring are often used interchangeably, but they’re very different beasts.
With invoice factoring, your lender buys your invoice debt in exchange
for the opportunity to collect on your behalf—for a fee, of course.
(That fee usually takes the form of processing fees for the advance,
plus a variable rate that depends on the speed of invoice payment.) You get the benefit of cash flow consistency without the hassle of chasing those customers yourself.Invoice Financing allows you to obtain cash up front for your invoices still keep in mind there are going to be fees (everyone wants to get paid). But you can collect the invoice and settle up with the business finance company. This allows you to keep in contact with your client and not confuse them with additional payment details.
If you are in need of a CashFlow partner contact a company like NorthWest Finance, no deal is too large or to small. Invoice Financing, Purchase Order Finance Equipment Leasing and Business Cash Advances can all be handled under on e roof.
NorthWest Finance
Minneapolis, St Paul, Mn
612-615-8196
www.businessinvoicefinancing.com
