The goal of a startup is not only to survive but also to achieve long-term sustainability. However, there can be great uncertainty in the early stages of operations which generally hold high costs and limited revenue. Adequate capital is key, and healthy cash flow is imperative for running any startup or small business. What do startups do though if they don’t hold a credit history, or have an imperfect one, and also if their customers are slow to pay? Traditional creditors such as banks, may limit finance options or decide not to extend lines of credit at all. On top of this, the approval processes involved with traditional creditors can be lengthy and stagnate the business.
Invoice Factoring Cash Flow?
Invoice factoring is a cash flow solution that gives you access to a large percentage of the funds held in your unpaid sales invoices. Your business can enjoy the benefits of the cash flow of the invoice before your customer pays it. A factoring company looks at the quality of your customers, and the invoices themselves act as security. No real estate or equity is required, which means your business gets paid quickly, often in 24 hours.
What are the Benefits for You?
- frees up valuable time and lets you focus on your business
- provides certainty of payment and cash flow
- simplifies payment collection
- helps to prevent payment issues with your customers
- allows you to be more competitive
- lessens the risk of default
- removes the need for a line of credit
- removes the wait time for bank approvals
- allows you to plan ahead for growth
- creates better business connections
- provides access to increased funds as you grow
Nova Cash Flow Finance offers a reliable recourse factoring facility and is committed to the growth of small and mid-sized businesses. If you have questions reach out to us obligation-free for a chat.