A Source of Immediate Cash Flow
by Kevin Smith AuthorBeing an entrepreneur comes with a lot of
unknowns. How long will it take to realize a profit? Will you be able to find
qualified and loyal employees? Will your customers pay on time? Will your
product or service stay in demand? Will you be able to keep a good grasp on the
pulse of the people to know what to market next? It’s a lot to worry about and
there are no guarantees. Luckily, there are some options available to ease some
of your worries.
Wearing Multiple
Hats
If at all possible, attempt to maintain a
second stream of income for as long as possible. While it’s difficult to give
the desired attention level to your business if you’re on someone else’s clock,
it will be even more difficult to keep the lights on if there’s no money. Time
for personal things like the movies and taking weekend trips will be
nonexistent but at least you’ll have the peace of mind that comes with having a
steady stream of income.
Get an Advance
So, what do you do if you’ve just opened
your doors for business and you get a massive order? One so massive that your
manpower and supplies can’t cover it. Let’s also say your personal bank account
is tapped out and you’re all out of options to cover this order. And, you
definitely don’t want to say no to a customer. So, what do you do? For new and
established businesses, factoring services in Alpharetta are available to get
you through a situation like this one. Once the customer is invoiced, a
factoring service will give you cash up to a percentage of the billed amount,
immediately increasing your cash flow. This affords your business the
opportunity to continue operations, fill a large order, or even hire more
staff.
The Approval Process
The approval process for Accounts
Receivable factoring is quick and easy. This is not considered a business loan
since the business’s customer owes the money. Now, in order for a customer’s
account to be eligible for transfer to a factoring service company, the account
must be in good standing. And, for the customers who pay you in advance or on
time whose business is predictable and manageable, you don’t have to use
factoring services. You’re able to pick and choose which accounts and which
invoices you want or need an advance for.
Having a demand for your product or service
that exceeds your current capabilities is not a bad problem to have. In fact,
it’s probably the preferred problem if the alternative is not having any demand
at all. When these issues arise, factoring services in Alpharetta are
available for a reasonable price.
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Created on Jan 29th 2018 02:43. Viewed 364 times.