We run into obstacles in our daily lives and have to find ways to get by them and accomplish our end goal.
Businesses frequently hit obstacles that get in the way of keeping the business on track for success. Start-ups have more obstacles when working to get their business going, but established businesses hit obstacles as well. Growing a business, promoting it and keeping it profitable pose different situations that impede the end goal.
They say it is not the situation or what happens to you, but your reaction to it that determines the outcome. There are many obstacles that we can prepare for in advance, however, there is always the unexpected. When these unexpected situations arise, it is important to focus on the outcome we want to achieve, rather than the obstacle itself. Focusing on the outcome and how to achieve it under new circumstances allows us to find solutions. A sports team, for instance has players ready to step in for someone who is injured. However, if they have too many injuries, they have to look for more players in order to obtain their goal – winning! Sometimes being prepared is not enough to tackle the unexpected.
A business, whether start-up or established will always have situations arise. Start-ups have more obstacles initially, because getting a business running is complex. A business has many requirements, however, working capital, positive cash flow and the ability to promote and grow are key. Many business owner’s run out of money or run short due to customers who pay slower than expected. Money is needed to meet payroll, rent, insurance, and buy or manufacture product. When there is a shortage of cash flow, the business owner has to look ahead to obtaining more operating capital. Even if there is a bank loan or line of credit in place, the bank may not be comfortable extending more money to the business. So, what now? Instead of focusing on the obstacle, the best reaction is to look ahead for solutions. Once there is a solution, the obstacle disappears and is no longer a factor.
A business, whether start-up or established will always have situations arise. Start-ups have more obstacles initially, because getting a business running is complex. A business has many requirements, however, working capital, positive cash flow and the ability to promote and grow are key. Many business owner’s run out of money or run short due to customers who pay slower than expected. Money is needed to meet payroll, rent, insurance, and buy or manufacture product. When there is a shortage of cash flow, the business owner has to look ahead to obtaining more operating capital. Even if there is a bank loan or line of credit in place, the bank may not be comfortable extending more money to the business. So, what now? Instead of focusing on the obstacle, the best reaction is to look ahead for solutions. Once there is a solution, the obstacle disappears and is no longer a factor.
One of the oldest forms of cash flow solutions is invoice factoring.
Invoice factoring or asset- based lending offers the business owner an option for keeping cash flow positive and does not require the complex criteria of a bank. Invoice factoring, does not require the 2-3 years in business that is required by banks with federal regulations. Many factoring companies will fund start-ups as well as established businesses. Credit is not an obstacle, because the invoice factoring company looks at the credit of the customers of the business and their ability to pay. Invoice factoring for cash flow can be long or short-term, and money is funded within 24 hours of invoices being submitted. The business owner is using future assets to fund the business, therefore no new debt is incurred by the business, as is with a bank loan or extension.
Invoice factoring allows the business owner to choose which invoices are sold. and retains control of the business. Many business owners and hopeful start-ups have turned to factoring when they have been faced with the obstacle of a lack of cash flow to the business.
American Receivable has been helping companies with cash flow solutions for 40 years. Call us today and find out if factoring is right for your business.
