Cash flow shortages can hamper small business growth. You have invoices waiting to be paid, but the bills keep coming in, and payroll is due. What options do you have?
One option is to take out a small business loan. Bank loans require an established credit history and an application process that can take weeks to approve. While a loan can help provide some working capital, if you need to take on additional loans in future months, you may have to take on other loans further adding to your debt.
Another alternative is accounts receivable financing. Instead of taking out a loan, you sell your invoices to a factoring company for a portion of the invoice value. The best feature of AR financing is that the approval process can happen in as little as a few days, sometimes even less! This allows you to grow your business and pay bills without adding debt to the company.
Reasons to Use AR Financing
The primary reason for AR financing is to handle short-term cash flow issues. When you receive the cash advance, you can use the money with little limitations to cover employee payroll, supplier invoices, or bills to keep your business going.
Sometimes a supplier will offer discounts or promotions on supplies that you’ll use soon. This can also include the equipment that you use for your daily business. Having the funds to purchase them when they’re on sale can help to save money in the long run.
The last main reason to use AR financing is to expand your business. This can be a business opportunity, expansion, or even having extra payroll available to hire new employees. Put simply, AR financing gives you the flexibility to grow and maintain your business in your terms.
How AR Financing Can Help Your Business
Outstanding invoices can slow down your business and even prevent you from taking on new customers. AR financing can clear up capital for new clients and projects while assisting you through the process.
Financing companies will generally give you an advance of usually 80-90% of the invoice’s value. They handle contacting your clients to set up payment arrangements. Once the client pays, the financer will deduct their fees and send you the remaining portion of the invoice.
AR financing also provides your business with flexibility. When your business has cash flow issues, you can pick which invoices to finance. This allows you to carefully control costs and cash flow so that you have the funds when you need it. If you have seasonal lulls or there’s economic volatility, this option can help you tap into new funding sources.
Where traditional lending options look at your credit score, AR financing fees are based on the credibility of the clients listed on the invoices. If you’ve worked with a business for a more extended period, and they have good credit, you can receive favorable terms compared to traditional load options.
One of the best features of this option is that it doesn’t count as a debt in most cases. This allows you to apply for loans or lines of credit so that your funding options are flexible.
So what sets Capital Now apart from other accounts receivable businesses? Capital Now is a locally owned business based in Calgary Alberta. When you work with us, you have our full attention throughout the entire process with our helpful team.
We want to help your business succeed. Unlike a traditional loan application, ours is a brief and straightforward process that can be filled out online. Once the application is approved, your first invoice can be funded in as little as 24-48 hours.
We work with hundreds of businesses located in Calgary Alberta and the Alberta province. You select the invoice, and once it’s verified, you get an advance of 75% of the invoice’s face value. Once your clients pay, the remaining 25% gets deposited minus our fees.
That way you have a solution to your cash flow needs, and we work with your customers to make sure the invoices get paid on time.
Once you partner with us, you’ll find a company that cares about providing you with transparent, friendly service. Whenever you reach out to us, you’ll talk with a team member that can decide on the invoices you submit.
That way the entire process runs smoothly. You’ll spend less time on the phone, and more time running the business you love. You’ll find that our transparent fees are competitive, and in a short amount of time, your funds will be deposited so that your cash flow needs are fulfilled.
See how easy it is to get paid for your invoices without waiting 90+ days for your clients to pay. Accounts receivable financing can provide you with the resources to grow your business, take on new customers, and keep the business going here locally in Calgary.