Immediately following the launch of your business, startup funding is essential. Having an efficient and consistent source of startup funding will carry your business through those crucial months to not only get a strong foothold in the marketplace, but ensure continued success.
Avoiding Loans For Startup Funding
Many emerging and small businesses feel a compulsion to take out loans to ensure a source of startup funding after a business launches. Unfortunately, many businesses find themselves beholden to liabilities for years to come, instead of accumulating revenue for growth in a competitive marketplace. When it comes to outside sources of capital, avoiding debt wherever possible is a hard and fast rule most small businesses should adhere to in order to maintain a positive cash flow. Monthly payments to banks and similar institutions to pay off loans eat into revenue, and prevent businesses from accumulating the capital necessary to act on growth opportunities.
Sales Mean Nothing Without Payments
A business can have a tremendous sales record right out of the starting gate, but if customers aren’t remitting payments, then it’s all for naught. Standard business practices dictate that invoices are paid on a staggered payment schedule of at least 30 days. In that time, businesses must meet payroll expenses, overhead costs, plus other items such as marketing and production. No one can force payments ahead of when they are due without driving away clients, but there is a way to expedite revenue and boost cash flow to increase funding reserves.
Accounts Receivable Financing Automates And Boosts Cash Flow
Accounts receivable financing automatically converts open invoices to cash while simultaneously eliminating staggered payment schedules. Accounts receivable financing provides a reliable source of startup funding without adding debt to the balance sheets. For customers, nothing changes and they still have to abide by the aging window on their invoices. For businesses, the open invoices are exchanged for working capital, usually within one business day. Regardless of the amount owed or the number of invoices, accounts receivable financing gives businesses the ability to accumulate working capital to sustain operations and roll out growth projects to secure a larger market share.
FSW Funding provides working capital solutions for startups, small businesses, and other growth-focused companies. We offer accounts receivable financing programs tailored to the needs of our clients, to reduce the need for debt-based loans. Contact our offices today to put our expertise to work for your business.