Building Momentum in a Strong Economic Climate
The economy is strong and customer confidence is high. The current economic climate offers a number of opportunities for businesses to build capital reserves and gain momentum for growth. Still, many businesses are reluctant to use debt-based financing to make that next big leap. Fortunately, there is a solution which allows businesses to build momentum and take advantage of the current economic climate.
A Strong Economic Climate Doesn’t Favor Loans
There is an axiom that when there is a strong economic climate, business owners should take out loans for growth projects. The truth is that taking out loans in today’s business landscape is a surefire way to hinder momentum and growth potential. Loans place debt on the books and provide a finite amount of capital. Once the capital is used, the debt remains and must be repaid with interest over the terms of the agreement. No one can say how long our current economic climate will last. If there is a downturn, businesses are left with overhead costs, the debt from the loans they’ve taken out, plus lowered revenue cycles. Taking out a loan is a high-risk move and one that can leave businesses in very bad shape.
Unfettered Momentum and Growth
Many businesses are experiencing increased sales in the current economic climate. However, most of the revenue is tied up in receivables with aging payment schedules of 30 days or longer. Getting immediate access to that revenue instead of waiting for it to trickle in can give businesses the momentum they need to grow successfully and make long-term plans. Invoice factoring is a great way to increase cash flow, build of cash reserves, and sidestep the “debt trap” of traditional loans. Invoice factoring converts unpaid customer invoices to cash quickly, so businesses can not only grow while we are in a strong economic climate, but also to build up reserves to protect themselves against any downturns or low revenue cycles. Invoice factoring is used by savvy business owners across all industries, and because factoring is fast and debt-free, there is a renewable source of working capital available at all times.
FSW Funding is a nationally-recognized leader in factoring services. If you are trying to grow your business, but want to avoid taking on unnecessary debt to reach your big milestones, contact the experts at FSW Funding today, and ask how our factoring services can keep your business on the road to success.