A company’s finances will always be difficult to maintain, whether you’re handling a startup or a small to medium enterprise (SME). A company manager’s time and resources must be spread thin to handle the tasks that designated employees should be overseeing. Besides your own team, your clients can also be a pain to collect for invoicing arrangements. Thankfully, outsourcing can solve the potential stress of keeping your books in check. With an accounts receivable (AR) financing solution to your company, your business processes’ funding will be more effective and sustainable for long-term growth.
Why You Should Work with an AR Financing Company
Every company is made up of different components handled by specialists to perform quality work. Unfortunately, some company managers tend to cover numerous responsibilities since they have a limited team.
This is why business owners must recognize their limitations and learn to delegate management tasks. For example, hiring an accounts receivable financing company is an excellent way to cut down your workload while optimizing your work financial resources.
If you’re still not convinced, here are three reasons you should work with an AR financing company:
1. Seamless Funding Process
Many mid-range startups depend on different loans to fund their operations. Since every loaning entity has a rigorous evaluation process, any mistake incurred can delay or deny applications. Thankfully, an AR financing company can receive your loan approvals much sooner since lenders have a viable company to verify your company’s financing. In addition, it gives your business better opportunities for a seamless funding process, allowing you to present your company as a creditworthy client to lenders.
2. Divertible Assets to Your AR Financing Company
Banks typically request upfront collateral before you can borrow from them. This is a financial disadvantage to business owners who are just starting out. Since building an enterprise is risky, it’s not uncommon for some business owners to put up personal assets as collateral. It’s a dangerous decision that can backfire quickly if the business doesn’t pick up the pace and generate enough revenue.
Thankfully, an AR financing company can convert your unpaid accounts receivable and future invoices as your company’s collateral. The AR financing company will evaluate your company’s assets and give you viable options for your funding needs. Then, based on your company’s progress, the company will purchase these valuable invoices from you.
3. Robust Internal Financing System
It’s important to generate profit to supplement your business’s different processes. This includes paying for rent, utilities, insurance, and even office supplies. However, having cash on hand isn’t as simple as paying off your numerous overhead costs. You’ll need to account for different financial processes, including tax deductions, before you can determine your monthly revenue. Instead of getting lost in your ledgers, an AR financing company will speed up your cash flow without having to wait for invoices to be paid in full. This gives you fewer worries concerning the consistency and precision of your accounts.
Although you may not have enough resources to maintain an in-house staff, that doesn’t mean you should burden yourself with the different facets of running your business. It’s a business owner’s priority to look for opportunities to grow, not to micromanage delays in payments. For this reason, a partnership with other professional firms will work well to your advantage.
Businesses are reliant on immediate access to on-hand cash to set earlier deadlines for target goals. If you want to improve your working capital, Porter Capital provides invoicing finance to fund your business’s processes in a timely manner. Contact us today and be part of our collection of clients nationwide benefiting from this cash flow model.