If you are a small business owner getting ready for the end of the 2013 tax year, it is also a great time to consider the general state of your business finances. Is your business continuously short on cash resulting from late payment from customers, a seasonal business cycle, flat revenue or something else entirely? Poor cash flow can have a negative domino effect for small businesses where they may not be able to pay their own bills or take advantage of unique business opportunities resulting from customers not paying them. In today’s slow moving economy, solid cash flow is even more important because there are fewer safety nets available. In fact, according to Inc.com, businesses closing their doors due to stagnant cash flow are more prevalent than most business owners would like to know.
Factoring Services Can Help Improve Cash Flow
So while you are taking the time to prepare your tax planning, take a few more minutes to consider using invoice factoring services also known as factoring accounts receivables to improve your cash flow or working capital. Such small business factoring services can serve to infuse monthly cash into your business easing financial restrictions caused by just-getting-by cash flow. Depending on your situation, your industry and the creditworthiness of your current customers, factoring your receivables may be more affordable than you thought.
Financial Services Factoring for Peace of Mind
Many small business owners feel a huge relief once they start partnering with an invoice factoring company because they know they will no longer have to worry about getting paid from their customers. With accounts receivable factoring, you get paid right away while the factoring company takes on the onus of waiting the 30- or 45-days to get paid. Moreover, with non-recourse factoring, the factoring company takes the hit should the client fail to pay its bill.
So if you are looking to expand or grow your business in 2014, purchase or lease new equipment, make a dramatic move into a new market, or are just looking to better manage your working capital, consider talking to an invoice factoring agent to see if you can benefit from this thousand-year-old financing method.