The Ultimate Cash Flow Guide

Chapter 6: Business Cash Flow Financing

Introduction

How does invoice factoring help cash flow?

You’re getting ready to launch a new product and really want to make a splash in your target markets. It’s time to strike while the iron’s hot. Unfortunately, your largest customer has a 60-day payment cycle. Your cash flow is dead in the water for at least another month…

The word is getting out there. You’re providing a great service and getting inquiries about larger projects. You’re nervous, though. You need free cash flow to shoulder the additional expenses of these larger projects that are key to your growth, at least until you can get a few of them under your belt…

Your business is a constant juggling act. You can see that there are sales opportunities there if you can increase your inventory, but it’s so hard when you need to make payroll and your cash flow is dependent on how long it takes clients to pay you…

If you’re experiencing challenges like this in your own business, you’re not alone. Free cash flow is critical not only to the growth of your business, but to its very survival. Running out of cash is one of the top reasons small businesses fail; in fact, 27% of startups die at the hands of a cash crisis.

Cash Flow Factoring

How can invoice factoring help solve for cash flow?

Bank loans and investors can help fund your company’s growth, but they tend to want to see a pattern of healthy cash flow before they’ll get behind your business. And while crowdfunding is great for those whose campaigns go viral, they’re but a tiny minority (recent research shows that 97% of seed or crowdfunded consumer hardware startups, for example, die or become zombies).

How can you create positive cash flow without heavy financing fees or losing control of your business?

Invoice factoring is a cash flow strategy that works by converting your outstanding invoices into immediate payments. You can end the nail-biting, hair-pulling cycle of stress that is trying to predict and plan around when your customers might pay their invoices.

You don’t have to wait to buy inventory, take on new business, or cover your payroll.

FundThrough empowers you to access your money when you need it, to fund the business activities that sustain and grow your business.

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