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(844) 860-2288
(844) 860-2288
(844) 860-2288
Businesses that invoice their customers for goods or services know the caveat of late paid invoices. Invoices are paid late 55 percent of the time. It’s no wonder that business owners turn to invoice financing for fast and convenient financing. You can receive funding as little as 24 hours and preapproval for funding in as little as few hours. Below we would discuss the main benefits of this type of financing and how it could help your business weather your cash flow gaps and working capital needs.
The main benefit of invoice financing is that you don’t have to wait for preapproval for weeks with traditional banks. Not only banks take their sweet time with pre-approval, but they also could take up to a month to provide funding. We know that businesses cannot take that long to obtain funding. We developed technology that enables us to provide preapprovals in as little as few hours. Technology that helps us provide funding as little as 24 hours.
The process is very simple and fast. We do not ask for a lot of documents like banks would and provide cash as quickly as possible. All it takes is few days and it could drastically change your cash flow to negative territory. Creditfy understand that businesses cannot afford to wait. You can use the funds to pay for common expenses like covering payroll and paying off existing debt. You can also you this type financing to cover equipment financing payments, vendor payments, credit card debt, taxes or rent.
When you secure a relationship with a lender, it’s not a one-time transaction. After taking an advance on unpaid invoices, you can do it again and again – an unlimited amount after paying each advance back. It works almost as a revolving line of credit. Lending companies want to continue the relationship as long as it makes sense for the business and that there’s no issues in making or collecting your receivables. The major benefit of the relationship is that the next time you tap into funding, the process is much faster and could take few hours to get future funding.
With invoice financing, credit score and revenue are not a major aspect of an approval like with other traditional products. Lenders are more concerned what kind of invoice you have or want to take an advance under, the relationship with your customer, what kind of customer/business it is, terms of the invoice and other business factors. If you have poor credit, you could still obtain this type of financing.
Invoice financing not only helps you to obtain the working capital you need, but it helps you to feel more secure. With a feeling of security of knowing you have the required capital; you don’t have to wait to get paid in order to take new work. You can use the funds in any way to help grow your business, pay any business expense or invest the capital into securing new projects or jobs. Many business owners use this type of financing to hire new employees for a new job, purchase new equipment or supplies.
When you pledge your invoice for an advance, you only pay back the advance when you collect the payment. This feature provides you with freedom of having great control over your cash flow. It also allows you to develop better relationships with your customers by extending their terms. This allows smaller businesses to obtain larger contracts and allow customers to pay beyond 60+ days. Majority of large businesses do not make an exception to pay within 30 days. Small businesses are discouraged to undertake municipal or government contracts because of the long payment period but with invoice financing this is more feasible.
With invoice financing you have the freedom of choosing how much funding you need, and which invoices you want to take an advance on. With a business loan, you might take more funds and pay interest on funds that you might not need versus invoice funding where its more custom. This helps businesses to obtain funds fast exactly when they need it. This type of financing is very similar to a revolving line of credit.
Business owners can benefit from this major factor of not being required to place any assets under collateral. The invoice itself acts as a collateral with the lender. You don’t need to worry about placing real estate, equipment or other form of collateral with this type of financing. Many businesses like this option because in case of the customer not being able to pay the invoice or the business not having the funds to cover the advance, they won’t be at risk in losing a significant asset.
When you obtain invoice financing your customers wouldn’t know about it providing you with a peace of mind. With invoice factoring which is a similar financing option, you sell your invoice and the customer would know that you’ve sold their invoice since the factoring company collects the payment directly from them. Many business owners don’t want their customers to know what kind of financing they are using and steer away from invoice factoring.
With invoice financing there are a lot of advantages in securing this type of financing. Businesses are not securing a one-time loan but a long-term financing relationship with the lender. Smart business owners need some type of secure source of capital and this type of financing is an ideal source to provide fast capital. Our team uses technology that enables us to provide fast funding regardless of time in business, credit score or revenue.
With invoices being paid late, this product helps business owners to gain the financial freedom that they deserve. Your customer shouldn’t dictate your cash flow or your success. We can provide funding as little as 24 hours. Apply with us and send us your invoices.