What Is Invoice Financing?
Invoice financing is an effective financial tool for small-to-medium sized businesses that need funds fast. Your asset-based lender will evaluate the merit of the invoiced company and make a loan for up to 90% of the value of the unpaid invoice. When the client makes the final payment, you get the other 10%, minus fees.
This process is called invoice factoring. It eases financial burdens by giving the lender the responsibility of sending statements, tracking payments, and reporting the customer to collections agencies if needed. There are two benefits to using invoice financing for entrepreneurs and small business owners:
- Time Well Spent – You spend more time securing new business and projects, taking care of your customers, and producing quality products and services instead of worrying about accounts receivable paperwork and collections.
- Cash When You Need It – Never turn away the opportunity to take on a new project or client because you didn’t have access to the cash needed for contractors, employees, equipment, inventory, etc. Your revolving line of credit is available when you need it.
What Is Purchase Order Financing?
Many commercial real estate projects and other business projects require purchase orders. These are official letters a buyer gives to your company formalizing the products or services to be exchanged, the quantities required, and the agreed upon pricing.
Oftentimes, businesses deliver solutions to customers without pre-payment. Some clients take longer to pay than others. With a purchase order loan, this contract becomes capital to secure this type of asset-based financing so you can use the money now.
The creditworthiness and financial health of the customer that issued you the purchase order are considered for this small business loan. That means your business can get funding based on the strength of your client’s merit as a business.
Purchase order financing is a very effective funding tool for business owners who don’t have good credit, as well as for startups with no credit history at all.
What Is Import-Export Financing?
This business property financing solution is used to help companies purchase goods that will be imported and/or exported to and from the United States. The capital it provides is used to buy the goods, as well as cover the import costs of bringing them to the US and/or export costs of exporting them to another country.
This small business funding tool allows you to purchase goods needed to grow your business. These may be products you’re purchasing for reselling or those needed for operations or production. Getting items through customs and dealing with other import complications and delays means stopping your company’s cash flow. This loan helps you stay afloat until the goods arrive at your doorstep.
Overseas transactions often involve delays related to customs and shipping issues. That means your customers may have to wait longer than expected to receive your goods, prolonging the invoicing process even more. This small-to-medium business funding option turns these overseas purchase orders into working capital for your business right now, when you need it most.