Getting Growth Financing For Your Small Business
Many small business owners face a number of challenges in today’s competitive marketplace. First, competition already exists. Even with extremely niche businesses, it takes capital to grow and have the voice to become noticeable in a sea of already established companies in the same industry. Second, getting access to growth financing can also be an obstacle. Traditional lending channels frequently have high requirements to access funding for businesses. Instead of putting plans for expansion on hold, or delaying internal projects, small business owners are using debt-free growth financing options.
Purchase Order Financing
Purchase order financing gives small businesses an advance in capital to take on large customer orders. This growth financing option is ideal for niche and small businesses looking to get a stronger foothold in their respective industries. The advance in capital from purchase order financing is used to cover the cost of production on large orders, in order to allow businesses to keep up with smaller orders without placing a financial strain on the company. Once the order is delivered, the customer pays the invoice in full, which covers the purchase order financing, and the remainder is given to the business as revenue. Because purchase order financing is used to take on larger orders, businesses can accrue growth financing without losing potentially big sales to competitors.
The lag in staggered payments from customers can often place a severe strain on cash flow. Invoice factoring eliminates the wait by providing a 24-hour turnaround on open invoices. Invoice factoring is a sale on receivables, which means businesses can get paid quickly and get access to growth financing without having to place any debt on the balance sheets. By using invoice factoring, businesses can keep a healthy cash flow, and quickly position themselves for growth. In fact, more small businesses are using invoice factoring to streamline the accounting process, because factoring services provide a centralized source of revenue, rather than having to track separate customer accounts internally.
Growth Financing From Biz Com Loans
Biz Com Loans has a wide array of growth financing solutions for small businesses. Whether you need an advance to cover large orders, boost your cash flow, or simply are in need of an infusion of working capital, we can help. If you want to position your business for growth, but would like to sidestep the red tape of traditional loans, contact our offices today.