#1 Way to Finance Small Business Invoices Quick & Easy
Why Accelerated Invoice Payment is a Better Business Choice than Invoice Factoring, Invoice Financing, or Invoice Loans
Today’s business environment for small and medium-sized operations is fast paced, rapidly changing, and requires flexibility in how businesses operate on a day to day basis, and that means constantly shifting demands on available revenue that can put any business in a temporary cashflow shortage.
Your business needs working capital not just to keep the doors open and lights on, but for every aspect of daily logistics including:
- Acquire business resources, equipment, and logistics set-ups you need to deliver products and service.
- Make payroll to keep your employees feeling happy and secure.
- Pay your vendors who help keep your business well supplied to run smoothly.
- Expand your business operations to generate more revenue and profits.
Without plenty of working capital on hand, stakeholders find themselves dealing with impatient vendors, uhappy employees, and the risk of falling behind better-funded competitors in the marketplace.
Common Working Capital Funding Options for Small Business
The ever-present pressures to increase business cash flow and build a ready reserve of working capital may be pressing enough that you find yourself needing business financing to raise more funds to compensate for any cashflow crunch. Once you start looking around at your options for raising working capital, you’ll typically run across these options such as the following:
- Business Loans – standard business loans can range into the millions of dollars depending on the value of your business and provide all the working capital you need as long as you’re willing to jump through the prodigious hoops needed for what could be a lengthy approval period. All your company’s operations can launch into full gear with enough financial backing, but remember that the money comes with strict strings attached when it comes to repayment. If you are not a ‘prime’ borrower, you can expect high interest rates that an keep your business locked into an expensive relationship with the bank for years to come
- Business Lines of Credit – the closest thing to having a revolving credit card for your business. Your business receives a maximum use amount per period (monthly, for example) not to be exceeded, and makes a minimum payment as agreed with the ultimate objective of paying the line of credit down to zero.Whereas a business line of credit can help even out your cash flow, pay for only what’s required, take advantage of seasonal opportunities, and build a relationship with a lender useful for the future, it does some with some downsides, such as its added cost expense, time-consuming and complex paperwork, and low spend limits. As with a standard business loan, you can put both your business and personal finances in a position of liability for the money.
- Business Inventory Loans – a typically shorter term loan or line of credit to fund a stock of product inventory for later sale, useful for businesses that rely on seasonality such as during the holiday season. Allows you to purchase supplies to create inventory to be sold using the inventory itself as collateral. This of course makes unsold inventory a problem because unconverted goods means money still owed to the bank.
- Invoice Factoring – when you’re light on cash flow because you’ve been doing business but your results are sitting in a stack of high-value invoices awaiting customer payment. Business people in this position can find easier approval for working capital by getting loans backed by payable invoices.Every invoice you hold for which you’re awaiting payment may be useful to convert into immediate working capital by letting an Invoice Factoring Company loan the invoice amount to be repaid not by the business, but by the invoice client. Unfortunately, this typically involves only getting 70 to 85 or so percent of the promised amount while they hold the rest back until the customer pays the invoice.Then they take their fee (up to 5%) before giving you whatever money is left over. Worse, with recourse loans, if the client does not pay, your company is held liable for the money.
Because many businesses don’t operate within the stringent requirements and limits desired by traditional lending sources, they require more flexible, easier alternatives to standard financing for several reasons.
- Independent-minded business people don’t want to feel lured or trapped into borrowing money for lengthy periods at high interest with hidden fees to raise desperately needed working capital.
- Entrepreneurs don’t like getting stuck in a debt repayment trap that eats into profits and puts even more pressure on business operators.
- Smart business people avoid uncomfortable repayment schedules that put strain on daily business activities and won’t tisk of looking bad to customers who might interact with funding providers.
- Finally, savvy merchants know to avoid getting trapped into personal or business repayment guarantees that put their company or themselves at risk of financial harm if business is slow or customers don’t pay their invoices.
Entrepreneurs now have enough options to choose from that finding the right fit is just a matter of deciding what you do not want to deal with in the fundraising process.
For example, if you don’t want to deal with reams of endless paperwork or having the bank dragging through your books – or if you don’t have time to wait possibly for months for a decision, then standard bank loans might not be the answer for your company.
You should also consider an alternative business funding option If you don’t want to chain yourself to guarantees and high interest rates over long periods of time. With these standards in mind, the best option available to put yourself in a better cash flow position is to use existing invoices to receive accelerated cash payments for an easy, fast infusion of working capital.
Accelerated Invoice Payments by NowAccount – Fast, Easy Working Capital for Your Business!
The team at NowAccount has years of experience as entrepreneurs in business and understand the pressures and worries that come with waiting on invoice payments, especially when invoices are worth many thousands of dollars that could be better put to use in daily operations like buying more equipment, acquiring supplies, hiring talent, and paying the bills.
Because we have been in your position, we also know the problems you’re trying to avoid and have designed our Accelerated Invoice Payment process to be as painfree and simple as possible.
- With NowAccount, your company can choose the exact invoices you wish to convert into working capital – we don’t require you to submit any you feel uncomfortable with.
- NowAccount works right alongside any previous Bank Loan arrangements you already have causing no inconvenience. The good thing about accelerated invoice payments is that it is like being rapidly paid by your client using a credit card.
- Unlike traditional business loans and ‘invoice factoring,’ NowAccount causes no personal or business liability to stress over! We take 100% responsibility for the invoice. If the customer does not pay, you are not put on the hook for it.
- Complete transparency with a low, fixed rate that does not balloon on you. We fund not 70%, no 80%, but instead give you 100% of the invoice amount minus a small fee.
- There are not weeks of paperwork involved and your NowAccount working capital can be available in as little as one day after approval.
If your business needs working capital to get out of a cash flow crunch for daily operations, staffing, inventory, and expansion, then the easiest, fastest, least risky way to go about it is through NowAccount’s Accelerated Invoice Payments. Follow these four steps to see for yourself just how it is to fund your business through us:
First Step – Perform Services and Provide Goods and Invoice your Client.
Second Step – Choose Accelerated Invoice Payments as your fundraising choice.
Third Step – Get Paid Within One Day Upon Approval
Fourth Step – Relax. NowAccount will take care of the rest of the process.
For entrepreneurs and stakeholders requiring flexible financing options to raise working capital fast, Accelerated Invoice Payments by NowAccount is the easiest solution to solve business cash flow problems. Why wait for invoices to pay off when they can pay off now to provide operating funds and some financial breathing room so you can focus on other areas of your business.
We’re excited to work with you to grow your business, get started by prequalifying, or reach out and book a time with our sales team if you still have questions!