Invoice Financing Boosts Manufacturing Business

Invoice Financing for Manufacturing Business, turn invoices into gold.

I have never heard in my 25 years in business heard a business owner brag about how much extra cash they have on hand. In fact they have so much cash on hand they don’t know where to stash it all. This is probably not the problem for a lot of “Legitimate” Business Owners. For those business owners not lucky enough to have this problem there is an alternative, "Invoice Financing".

How Invoice Financing Works

Today’s manufacturing environment calls for being able to change, adapt and grow on the fly. Changes in Manufacturing Techniques, Manufacturing Centers and costs can leave the unprepared business owner’s head spinning.  There are times when things seem to be moving at a steady but workable pace and then there are the times when change is happening so fats it is difficult to keep up with.

In either case manufacturers need to always have a grasp on their capital situation. Not being ready to take advantage of opportunities due to a lack of capital is setting your competition up for the big win, leaving you in the dust.

That’s where Invoice Financing can really come in handy.

Most manufacturing companies eventually need business financing to grow. It’s just the nature of this working-capital-intensive business. For example, most manufacturers have regular expenses, such as raw material suppliers, equipment leases, rent, and staffing costs. These expenses add up quickly.

Payment terms can have a negative effect on cash flow.

Offering payment terms is often necessary as the manufacturing and purchasing chain will often demand this type of payment flexibility. The end result, manufacturing companies that offer terms can often run into cash flow problems. Ultimately, these problems can grow and threaten the business.

Use your outstanding Invoices to Finance Your Business

This solution provides you with immediate funding, solving your cash flow problem. When you deliver your products, an Invoice Financing company provides you with an advance. The transaction settles once your client pays the invoice in full, on their regular schedule.

One Advantage to Invoice Financing

One advantage of invoice financing is that it allows you to offer net-30 to net-60 day terms and helps you avoid cash flow problems. You can use the Invoice Financing line to finance your company’s strategic growth by taking on new customers, allowing you to grow beyond your current financial limitations.

Invoice Financing an easy Alternative

 Qualifying for this type of Financing

Invoice Financing is typically easier than applying for a bank line of credit or a loan. The paperwork is streamlined and you can us it when you need it. There are no lengthy credit checks or business plan proposals necessary. 

 Once you open an account with an Invoice Financing Company you simply submit the invoices you would like financed and the funds are deposited in your account within 24-48 hrs.

If your Manufacturing, Trucking, Employment, Import Export etc business is in need of a financing alternative contact NowrthWest Finance, Invoice Finance specialists.

NorthWest Finance

Minneapolis St Paul and Across the US

612-615-8196

www.businessinvoicefinancing.com

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

Invoice financing can boost the bottom line for your business.

Alternative Business Finance Options

Invoice financing has been proven as a useful tool to help your business get thru troubled times or good times. When t looks like your industry is slowing down and you have to scratch for all the capital you can to keep going Invoice Financing can mean the difference between moving forward or becoming dead in the water.

We here this from businesses all the time, "we don't have enough liquid capital" We have opportunities but we are not able to take advantage of them. This should never be the case for any business. You should always have a plan to take advantage of opportunities when they arise.

Invoice Finance Basics

Some businesses are lucky they have a strong foundation and they have relationships with banks that will loan them capital when that need arises. There are also companies that work in the capital markets, these are larger companies that can offer bonds or other financial instruments such as preferred stocks to fund large upcoming projects.

But for the most part the majority of American businesses are smaller operations that just don't have those types of resources. Most American businesses operate on a tight financial budget. Just as many households do. Finance issue for business mirror those of families because the majority of  small businesses are family owned operations. Whether you are a trucking company, a manufacturing company an import exporter etc. Your small business finance needs are probably something you have to face and deal with on a daily basis.

Trucking companies face a different set of business finance needs than a manufacturer but in the end if you look at the bottom line they are actually pretty similar. You need operating capital to keep your business machine open and moving forward. A manufacturer may need a business loan to purchase a new packaging system where as a trucking company may need capital to upgrade their fleet. It all falls under the heading of working capital.

The needs are the same sometimes it just comes in a different set of circumstances.

Owning and running transportation company, either as a carrier of freight broker can be financially rewarding but painfully challenging at the same time. One of the larger challenges business owners face is moving freight loads from shippers who slow-pay, taking up to 45 days or more to send a check for outstanding freight bills. This kind of delay creates cash flow gaps and makes it more challenging for your business to cover expenditures like, payroll, diesel fuel costs, repairs, new tires and weekly financial obligations.

Similarly
When manufacturing companies are diligent in making the right, budget-conscious decisions with internal expenses, there are external cost factors for which companies have little to no control over that can cause a great deal of financial upset. Required expenses, such as property taxes and required insurance coverage can change with only a moment’s notice, making it difficult for manufacturers to keep up with the daily cost of operation and employee payroll.

The comparisons are pretty close the needs are the same, you have to have access to capital in any industry. That's where invoice financing can really come in handy.

There is a huge difference in Invoice Financing transactions and Bank Loans as this graphic shows.

Invoice Financing vs. Bank Loans

If your business is interested in learning more about Invoice Financing and how it may help your business or if you are in need of working capital to take advantage of an opportunity coming in your near future consider contacting a company like NorthWest Finance. Invoice Financing for American Businesses.

Fuel Business Finance
612-327-5756

Invoice Financing | Purchase Order Financing | Equipment Lease Financing | 

Merchant Cash Advances