No matter what type of business you operate, there come an exciting, yet stressful time—growth. Growing your business is everything you’ve ever dreamed of, but it doesn’t come easy.
Tips From an Invoice Factoring Company | Better Growth Management
With fast growth comes financial setbacks. Rather than letting your new-found growth get the best of your business, here’s four tips that will allow you to make the most of it.
1. Partner with an Invoice Factoring Company
When you partner with an invoice factoring company, you’ll be able to grow at the pace you want. We see countless businesses that grow too much and let their cash flow issues get the best of them. By partnering with an invoice factoring company, you’ll be able to take control of your cash flow.
An invoice factoring company will let you get paid constantly and consistently to help you keep up with your increase of business. Invoice factoring is the process of selling your outstanding invoices to an invoice factoring company for an up to 96% cash advance with low rates.
The invoice factoring company will work with your business to determine which invoices to factor and in what amount, allowing you to get constant payment—quickly.
2. Avoid Overspending
When you first partner with an invoice factoring company, you’ll experience a major increase in working capital. Many businesses believe that it is a good idea to spend their funds on new equipment, inventory, or other strategies.
Just because you have the money, does not mean you have to spend it. Spend smarter. With invoice factoring on your side, you can take advantage of bulk inventory sales and other promotions that allow you to get what you need, while keeping as much money in your pocket as possible.
3. Monitor & Plan Your Cash Flow
With immense growth comes mismanaged cash flow. Because your business has not experienced this volume of work, things tend to get missed. Be sure that you have an adequate team or system in place that can monitor your cash flow.
When you partner with an invoice factoring company, they help take away the burden of cash flow management. Because the invoice factoring company advances funds, they take on the task of collecting payment from your clients. This will free up time and resources commonly used to manage administrative tasks.
4. Keep a Strong Source of Working Capital
Without invoice factoring, you can wait up to 90 days to receive payment on outstanding invoices. This can not only kill your cash flow, but leave you with little to no working capital.
To keep your business afloat during slow times, it’s crucial to have a strong source of working capital. By partnering with an invoice factoring company, you’ll be able to get paid instantly for your work to start securing working capital.
By having your invoices factored, you’ll have frequent and consistent cash flow to build your source of working capital. With capital on hand, you’ll be able to expand into new markets, stock up on inventory, expand staff, and more.