Accounts receivable financing is one of the best ways to get cash in your hands quickly, as opposed to waiting 30, 60, or 90 days for your invoices to actually be paid by customers. When you get accounts receivable financing setup with an alternative lender, you can get cash for your invoices every month, to keep cash flow steady and avoid the typical constraints imposed by sporadic incoming revenue. Here are some of the best ways to use that cash from A/R financing.
How A/R financing cash can help your small business
First of all, you can ensure that your employees are paid on time, because if they aren’t, you probably won’t have a small business for long. The same is true for paying your vendors – if they don’t get their money, you won’t get the supplies you need, and again your small business will come to a screeching halt. You will undoubtedly have a number of other costs associated with doing business, such as paying rent, utility bills, marketing and advertising costs, and even purchasing needed inventory.
When your cash flow situation becomes fairly stable, that’s when you can begin to consider more long-term uses for your accounts receivable financing cash. You might want to invest in a new piece of equipment that will help your business grow, or some new software that will increase your business efficiency, or even making an upgrade to your business location. By using A/R financing money to best advantage, you can stabilize your business, and even help it to expand to the next level of success.
Accounts receivable financing through Span Capital
If your business is one which has a large volume of monthly invoices, or if you have a few which are very large amounts, you may want to consider accounts receivable financing, to get fast cash in your hands with no waiting for customer payments. Contact us at Span Capital to discuss how accounts receivable financing can be setup for your small business, so your cash flow situation can instantly be improved.