Some of you small business owners out there probably understand how hard it is to obtain traditional bank financing. There’s so much documentation you have to provide and the process is often quite cumbersome depending on the institution you’re working with, especially in today’s economic climate. If you have to work directly with a loan officer who handles everything, it may be difficult to get a hold of him or her at times.
This is where taking advantage of today’s technology comes into play.
Taking Advantage Of Today’s Technology
With the advances in today’s technology, there’s no reason for inefficiencies in approvals for small businesses. One of the best forms of small business financing is factoring. Now take that one step further and try online factoring.
Factoring is a financial product that allows you to sell your creditworthy receivables to a third party also known as a factoring company. Advance rates vary, but are typically around 80%. Once the invoice is paid, then you get the remaining percentage back less applicable fees.
Why You Should Consider An Online Factoring Company
Many business owners, just like you, are constantly on the road, working from the early morning straight through the evening. You might be in the warehouse or out in the field.
When you’re in the weeds like this, there are big picture and day-to-day tasks you’re worrying about:
- Business development
- The product or service your business provides
- Ensuring your books and records are properly managed
- Cash flow
In order to successfully achieve a lot of what’s on that list, your company has to have adequate cash flow. With everything you have to do in a day, it’s difficult to connect with your lender during regular business hours to set up your funding request.
The Luxury Of Online Factoring
The luxury of online factoring is you submit invoices at your convenience and let your factor know how much of an advance you need. This makes your cash flow planning and organizing way more efficient, giving you one less thing to worry about.
You eliminate the 30, 60 or 90 day wait times for your invoices to get paid. Just because you’re generating the revenue doesn’t mean you have the sufficient cash flow to go with it.
Factoring helps close the gap between when an invoice is billed and when the cash is collected. By factoring online you make the process even more efficient because you submit the invoices and request the advances at your convenience, fitting it into your hectic schedule. For those of you who enjoy the ability to speak with a live person, you still have an experienced lender willing and able to speak with you.
Download Online Factoring: Myths vs. Facts. Get your questions answered to finally get started with your own factoring program.