When you are the owner or the operator of a business, there are times where profits from your business aren't enough to give your business the working capital it needs. Your business has employees that it needs to pay, utility bills need to be paid and often times, there are many products that are needed to provide the products or services your business offers. In some situations, you will need to be creative when it comes to business funding services. Fortunately, there are many providers of this type of funding that can help you find the working capital you need in creative ways.
Invoice Funding
One option you have is utilizing your unpaid invoices as collateral for funding. This particular type of business transaction is known as invoice funding. There are a few different ways that you can unlock cash flow from unpaid invoices. With invoice funding, your business can use existing invoices and borrow against these invoices so that you're not waiting around for slow to pay customers in order to have the working capital you need. Once the invoices are paid, you can repay the invoice financing company.
Factoring
In other situations, you may be able to sell your accounts receivable to a factoring company. In this instance, you will typically sell your invoices for 80% to 90% of the invoice and the factoring company will pay you for these invoices. The good thing is this gives your business working capital and you don't have to worry about collecting on the accounts receivable. Once the accounts are sold, it becomes the responsibility of the factoring company to collect the invoice.
Financing Assets
There are also other funding solutions to consider such as asset financing. If your business needs specific equipment, but you're not in a financial situation to purchase this equipment outright, there are many companies that can provide financing for the purchase of the assets your business needs. Whether it's vehicles or workshop equipment, you can find companies that will offer you affordable financing terms for the equipment your business requires.
Refinancing Assets
In addition to this, you can also use other funding solutions to refinance your business assets. If you have financed machinery or equipment and the terms of that financing is costing your business excessive amounts of money, there are many funding companies that can help you refinance this equipment. This will allow you to unlock some of the capital you have tied up in expensive financing.
There are many other types of funding that a dedicated funding solution company can offer you. Whether you need an invoice financing, invoice factoring, asset financing or credit insurance, there is a creative funding solution to help your business unlock significant amounts of positive cash flow.