Cash flow and liquidity is a challenge for all businesses at one point or another.
Part of the problem might not be your business at all, but rather, it could be that your clients haven’t paid invoices on time.
Or your company is growing much quicker than expected. In this case, you could do so much more if you had access to the cash that will eventually come in when your accounts receivable are paid.
In other cases, it could be that an unexpected event occurred like major equipment damage or an unexpected product delivery schedule change. Any major event could put your company cash flow into crisis, and the possible tailspin can put any business owner into fright.
An Innovative Solution to Invoice Processing
Whatever the issue, there’s a solution to speed up your invoice processing called “accounts receivable financing” that can be a huge relief.
Also called “factoring,” this is an innovative way for your business to access quick and secure financing through the sale of your invoices. We specialize in this financing at Liquid Capital, and can offer up to 85% of the value of your accounts receivable, which you can then use as you need.
And this can be a liberating strategy to free up working capital on an ongoing basis. Your only limit is your ability to sell to credit-worthy customers. We collect the financed debts from your customers, which frees up your admin time and takes the headache out of your A/R process. But you’re not in the dark, as we also provide clear, accessible reporting to keep you up to date on the process.
Where a bank loan might be denied, A/R factoring could potentially advance you hundreds of thousands of dollars—in a very short timeframe.
Many SMBs can’t access traditional bank loans all of the time. They could be extended already with bank debt, have an untraditional business model that the banks aren’t yet comfortable with or a host of other points that don’t satisfy the institution at that point in time.
This isn’t to say that a bank loan isn’t possible in the future, but in the meantime using accounts receivable financing can be the exact answer needed.
Get the full details on accounts receivable financing here.