We often spend lots of time thinking of the past and the future when all that’s really important is right now. For example, if you are facing financial difficulties in your business, you may be looking for invoice discounting for get your cash now, not yesterday or some distant point in the future.
When big businesses need extra money, they just dip into their vast supply of working capital. Most small businesses are not so fortunate. You typically don’t have such deep pockets, so when you run short of cash, you need to replenish the supply right now. Still, you should be aware that invoice discounting is not the only option.
What is Invoice Discounting?
Invoice discounting is a long-standing business practice of getting a fast business loan using outstanding invoices. A factoring company will purchase them and give you a percentage of their value, minus a fee for their services.
This lets you avoid waiting 30, 60 or 90 days for them to become due. However, some companies insist that you relinquish control of the invoices, meaning that your customers make their checks payable to the invoice company, not to you.
Is There an Alternative to Invoice Discounting?
Many companies see invoice discounting as the only way to get immediate business cash. Others have come to realize that there are more favorable options. For example, Financing Solutions (www.financingsolutionsnow.com) can offer you a line of credit that you can use anytime you are short on cash.
A line of credit from Financing Solutions has low interest, an easy application process and approvals within 24 hours. They also offer flexible repayment schedules.
If you have at least $500,000 in yearly revenue and a credit score of 650 or more, you can be approved for a yearly line of up to $150,000. Best of all, you pay nothing until you actually withdraw funds.
How to Get Cash to Grow Your Business Now
You probably see lots of opportunities to improve your business over time. But what can you do when you need to make it happen now? Here are some quick fixes that you can adopt for your business at any time.
First, you must keep a close eye on your cash flow statement and make it the guidebook for your business. Just because you have plenty of sales, it doesn’t mean you have plenty of cash. You can increase your cash on hand by slightly adjusting your business practices. For instance, you can ask customers for a deposit before work is performed, be more insistent in collecting account receivables and bill customers weekly instead of monthly.
You can also streamline your processes with technology. This can be used in many ways, such as tracking employee time for more accurate payroll, generating invoices with accounting software, using a VoIP system to manage your phones and investing in server to handle that mountain of documents.
Perhaps the best way to get immediate cash for your business is to contact Financing Solutions. They will take away your money worries so you can focus on growing your business.