A small business line of credit could help to change the way your business is being run. With so many limitations on borrowing, some contractors may find that traditional methods are not working well for them. However, with an invoice-factoring solution, your business may be able to tap into money that is coming in without limiting yourself in the long term. Advance Funds Network has the small business line of credit your organization needs and it can help you to manage your contractor’s jobs efficiency.
What Is Accounts Receivable Factoring?
To speed up cash flow and to build upon your business, you may need to tap into accounts receivable. Invoice factoring works for small business owners or contractors because it allows them to access funds that they’re waiting to receive. For example, the purchase occurs and your creditworthy customer owes you money, but is unlikely to pay for 30, 60 or more days. That is when Advance Funds Network can step in. It provides you with a line of credit based on the amount of money you’re expecting in the future.
In short, your business is able to utilize funds from customer orders not yet paid by the customer. This means your business will keep working and functioning without limitation. Your also not taking additional funds beyond what you’ll be able to pay.
What You Need Help With
Many businesses need a small business line of credit and the following are some of the ways that your business can utilize these funds.
- Payroll Financing: Need to make payroll Friday but funds aren’t due till the next week?
- Payable Financing: Do you need to pay an invoice but the funds you need to pay it are late from your customer?
- Materials Financing: Did you get a big project order to be paid on completion, but you need to buy materials to get the job done?
- Equipment Financing: Are you in the middle of a large project but your equipment broke down or needs repair?
- Subcontractor Financing: Is the project too big for your team to handle and you need to bring in extra hands to help?
In each of these situations, business owners often need to pay out to help complete a project before they get paid for the work. This situation is often seen the construction contractor industry, where it is quite common for construction lenders to pay out only over a period of time, as the work is complete. While this does offer safeguards for the buyer, it does not provide contractors with enough of the resources they need. To get the job done, the contractors need to meet payroll, purchase necessary equipment or keep materials coming in. If they don’t have the funds to do so, they might have to turn down a big opportunity for profit.
Through the right small business line of credit, your business is able to tap into the funds already promised to achieve your financial goals.
The good news is that you have options including invoice, factoring or other types of small business lines of credit. Advance Funds Network works directly with small businesses of all types who need financing for specific situations. In many cases, you may need help to get through the project and these financing options can help you to accomplish that and much more. Consider how Advance Funds Network can help you and your business to achieve benefits and resources.