Aug 9, 201812:01 PMOpen Mic
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Boost your cash flow with invoice financing
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Invoice financing is one of the least understood and under-utilized financing options. When you work with an invoice financier, you conduct business normally and invoice like you always do. Then an invoice financing company pays you a cash advance quickly at an agreed advance rate (80%–90%) for those customer invoices, freeing you up to pay employees and reinvest in the business. You don’t have to worry about collecting payment, which allows you to focus on your business instead of your outstanding invoices. You receive the rest of the payment, minus agreed-upon fees, after your clients pay the invoices.
Many business leaders also find invoice financing attractive because their personal and business credit history aren’t as important to invoice financiers as the creditworthiness of their customers paying the invoices. You likely got into business because you enjoy making a particular product or offering a unique solution — and you’re good at it. Invoice financing allows you to focus on what you enjoy and grow your business.
Bill Elliott is president of First Business Growth Funding and has more than 35 years of experience in the commercial finance sector, with a special focus on accounts receivable financing and asset-based lending.
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