Invoice Financing 5 Reasons Why it Works

There are many different options for financing your business. Keeping working capital on hand for any number of future business objectives is critical. Invoice Financing is one of those tools. Keeping an open mind and utilizing time tested business finance options can be a method any type of business
can utilize. It's fast and has been used by companies for hundreds of years.  

It doesn't matter if the economy is slow and you need cash flow to get thru a rough patch or if the economy is rolling and you need to keep up with production demand Invoice Financing can be a tool you have at your seed when the need for liquidity arises.

Here are a few reasons Invoice Financing should be a source for you to turn to.

   
1. Bank loans can be difficult to qualify for
Even during the best of times, qualifying for bank financing is difficult for most businesses.  With factoring, qualification is primarily based on your customers’ credit, not yours.  Why?  Because factors (companies who buy invoices) don’t lend money, they buy invoices.  Factors will work with companies that have tarnished credit, or very little credit history, as long as their customers pay their invoices on time.

2. Collateral
Bank loans are secured by all your corporate assets and often by your personal assets as well.  Invoice Financers only require a first priority lien on your accounts receivable.

3. Scalability
If you have a bank line of credit, the business opportunities you can pursue are governed by the size of your credit line.  With Invoice Financing, there are no credit line caps to limit your growth.  The amount of capital available to you grows in direct proportion to your sales success.  More sales and larger accounts mean more and larger receivables, which can immediately be financed to obtain the cash you need to service customers and sustain growth.

4. Flexibility
A bank loan creates a long term commitment – a monthly payment and a debt that must be repaid whether the business succeeds or fails.  Invoice Financing simply accelerates the payment of monies your company has already earned, and it can be turned on and off like a faucet.  You can factor all your invoices one month, and none the next.  You can decide which is invoices to factor, and when.  If you need cash to meet payroll or to capitalize on an opportunity, just finance some invoices.  With invoice financing, your receivables become an open line of credit that you can tap into whenever you need more cash.

5. Cost
The fees associated with factoring are competitive among other financing options.  For example, they are comparable to the fees charged by credit card companies to advance cash to merchants on their credit card sales.  Factoring fees could be considered cheaper than bank or credit financing if you take into account all the extraneous fees that banks charge in addition to the cost of funds - application fees, service charges, escrows to maintain, plus the requirement to pledge all your assets.

These are just the top five reasons to consider Invoice financing as an option in your cash flow toolbox. If you are considering obtaining Invoice Financing Purchase order Financing or a Merchant Cash Advance consider NorthWest Finance, a nationwide finance company.

NorthWest Finance
Minneapolis, St Paul, U.S
612-615-8196
www.businessinvoicefinancing.com 

Invoice Financing | Purchase Order Financing | Merchant Cash Advances | Equipment Lease Financing

Invoice Financing - Purchase Order Financing

Have you overlooked Invoice Financing as a tool to keep your business finances liquid? Are you ready if the need arises to finance new equipment or facilities or hire more employees? If the opportunity arises do you have enough cash in reserves to take advantage of an opportunity that will take your business to the next level?

Invoice Financing for Large or Small Businesses

The reality is that invoice financing is a financial tool that offers funding enabling you to access funds tied up in unpaid invoices. If you are waiting 30-60-90 days to get paid you are under utilizing those assets.

It really doesn't matter whether
you operate a small manufacturing business or a large transportation company you need to liquid assets to take advantage when the opportunities arise.

Invoice financing offers you the flexibility that you are going to be looking for when the time arises.

The reason Invoice Financing has become so popular is the flexibility from which funding can be acquired. Submit a partial invoice or submit the whole thing. Submit an Invoice for Financing once a year or submit them daily it really doesn't matter. Once you have an account set up it's up to you. You control the when the need for liquidity arises.

When companies need to improve their cash flow Invoice Financing significantly increases liquidity in the absence of traditional bank loans. Bankers can be slow to make a finance decision costing you opportunities that your competitors will gladly take advantage of.

Once you have delivered the goods or services you are eligible to submit your invoices for financing. The typical time frame can be funded in as little as 24 hours. You will get up to 95% of your invoice advanced to you the finance company will then advance the remaining percentage once the invoice is collected upon minus their finance fee.

It's fast and easy with very little paperwork necessary to complete the transactions.

Obtain financing without adding debt to your business. Debt can be burdensome making large payments month in and month out. It can also lead to stress and bad decision making. When you have large amounts of debt it also makes your balance sheets unattractive for potential investors or buyers.

Flexible Business Finance Options

If you have a lot of outstanding business invoices clearing them from your books can be a great way to show potential buyers how clean your books are. This makes perfect sense if your end game is to build up your business and offer it for sale.

In most cases Invoice Financing makes sense for businesses. If you are in need of a relationship with an invoice financing company contact NorthWest Finance we have the resources to fund from the smallest invoice to the largest outstanding invoices. From small local companies to large corporations you can take advantage of invoice finance to provide liquidity for your next big business move

NorthWest Finance
Minneapolis - St Paul, Nationwide Finance Resources
612-615-8196
www.businessinvoicefinancing.com

Invoice Financing | Purchase Order Financing | Lease Financing | Merchant Cash Advances

Merchant Cash Advances for Auto Businesses.

Merchant Cash Advances for Auto Repair Businesses

 

Auto Repair Shops are finding Merchant Cash Advances a quicker and more accessible alternative business financing than bank loans. Auto repair business

Auto Repair Merchant Cash Advances

growth may include upgrading repair equipment. These high price tags often mean leasing or alternative financing. NorthWest Finance cash advance funding is a proven source for fast cash to meet a repair shops financial needs. 

Merchant Cash Advances are a cost-effective option to leasing that both secures your operating capital for your shop while keeping your new equipment free from liens or security interests. Also, no personal guarantee is needed from the business owner – NorthWest Finance takes on the risk of the cash advance!

Commercial equipment leasing financial institutions secure your lease with the purchased repair equipment used as collateral. With our merchant cash advance, you use a portion of your future Visa and MasterCard sales to obtain the purchasing funds upfront – no collateral, no personal guarantee, no major changes to your Balance Sheet. Often auto repair shops find the new equipment allows the work flow to increase, creating more sales that pay off the advance well within the usual repayment period.

Since your equipment is purchased with a cash advance and not a lease or a loan, there are no late fees, late payment, fixed payment schedule or annoying phone calls looking for payment. Since a Merchant Cash Advance is not repaid from your businesses cash flow only a percentage or a portion of your income is used to repay the cash advance from Visa-Mastercard.

The speed with which NorthWest Finance responds to your merchant cash advance application means your repair shop can proceed quickly to get new repair equipment, advertising or pay upcoming bills, like quarterly IRS payments, on time. Our rapid approval and cash advance process usually takes less than ten business days. Once your merchant cash advance is approved, the money is transferred directly to your auto repair shop’s bank account.

 

Auto Repair Business Cash Advances

Contact the merchant cash advance experts at NorthWest Finance and see how our alternative business financing can assist you in meeting your company’s working capital needs better than traditional loans and commercial equipment leasing options.

 

There is no need to switch processing companies. 

Minimal paperwork 

Funding typically takes 72 hrs.

 

Good credit? bad credit? or no credit we can help finance your business.

 

Contact:

Mike

NorthWest Finance

Minneapolis, St PauL, and Nationwide

www.businessinvoicefinancing.com

1-612-615-8196

 

                           Merchant Cash Advances | Merchant Cash Advance Companies                            Business Cash Advances

Invoice Financing for Auto Supply Companies

Invoice Financing can be utilized by many different industries and company types do you own or run a automotive supply business? Automotive supply businesses are very easily financed thru invoice financing.   

Auto Parts Supplier Finance Options

Invoice financing can be the difference between make it or break it. if you re selling large amounts of auto parts to retail stores, exporters or any means of moving your inventory there may be times when you come upon a cash shortage to purchase more equipment fund facilities or hire more employees to help fill growing orders.

An Invoice Financing Company can help you bridge the gaps that arise from slow pays on orders you have full filled. There is nothing worse than waiting for long periods of time for payment on orders that have already been filled.

Auto supply businesses can benefit from strong relationships with their buyers. If your buyers are large retail chains for instance there is probably a decent lag between delivery acceptance and payment. Retail operations often run behind themselves as they wait for inventory to move off of shelves. Not everyone needs a starter for a 2006 Nissan but when they do they know where to find it.

No matter if you are a OEM auto parts distribution company or an aftermarket specialty parts company, you probably have a good relationship with your buyers in your distribution chain. This high level relationship can lead to reduced rates and fees when it comes to an Invoice Finance transaction as the finance company will be taking on less risk.

Here's an example (only) of how this type of transaction may look.

Your Auto Parts Company sells $100,000.00 worth of parts to a retail chain
You submit the 100,000 invoice to your finance company.
Once it is verified (typically same day or within 48 hrs. max) the finance company will advance you
85% or in this case $85,000.000
Once the invoice matures and is collected the finance company advances the remaining 15% minus their finance fee.

Alternative Finance Resources

It is a really fast and effective way for you to keep the cash flowing into your business for the things you need most. This type of transaction can be a one time or ongoing monthly relationship. Once you have an account open you are allowed to submit invoices as you see fit. When you are in need of additional cash flow submit a whole or partial invoice and get your money upfront.

If you have a need for a quality Invoice Financing Company contact NorthWest Finance. Invoice Finance, Purchase Order Finance, Equipment Lease Financing, and Merchant Cash Advances.


Get your money when you need it not when it's convenient for your contractors to pay it.

NorthWest Finance
Minneapolis St Paul, Nationwide
612-615-8196
www.businessinvoicefinancing.com

Invoice Financing, Purchase Order Financing,  Equipment Lease Financing, Merchant Cash Advances