5 Steps to a Healthier Cash Flow in 2016: Give Invoice Financing a Try

Author: Justin Reynolds | December 3, 2015

(Note: This is the fourth installment in a five-part series on improving your cash flow. Here are the first, second and third parts.)

Running a small business is hard work. Throw cash flow problems into the mix and it can become nearly impossible.

It’s safe to say most small business owners—if not all of them—understand the detriments of cash flow problems all too well. Still, more than half are forced to deal with cash shortages more often than they’d care to admit.

Unfortunately for countless small business owners, many companies that run into cash flow problems happen to be business partners and customers. When those folks don’t have access to capital themselves, it’s increasingly unlikely they’ll be able to settle their invoices in a timely manner.

In other words, cash flow problems in a business ecosystem beget additional cash flow problems in said ecosystem. How can you expect your customers to pay their bills promptly if they simply don’t have access to the necessary funds? This is a big reason as to why net 30 is routinely changing into net 60, net 90 or even worse.

Thanks to new invoice financing services like Fundbox, however, small business owners are able to reclaim control of their cash flow. For a small fee, Fundbox advances payments on outstanding invoices, quickly giving companies access to the capital they’re not only owed but that they also need to grow their operations and expand their businesses.

Using an invoice financing service is incredibly easy. For example, here’s how Fundbox works: Navigate over to the website and create an account, which takes less than a minute.

Once your account is created, connect your accounting app to Fundbox, which only takes a couple of seconds. There’s no paperwork to fill out, and there aren’t any phone calls to jump on. Then pick an unpaid invoice you want to clear and presto, that money’s transferred to your bank account immediately. You then have 12 weeks to repay the advance, plus a small clearing fee. And if you repay the advance earlier, a proportional portion of the clearing fee gets waived.

Simply put, invoice financing allows small businesses to solve their cash flow problems, giving them the peace of mind that comes with knowing funds are always a few clicks of the mouse or taps of the finger away. This allows them to pursue new opportunities with ease without having to worry about how they’ll be able to write a rent check or make payroll.

Stay on the lookout for the final installment in this series. We’ll take a look at how developing new products, targeting new markets and launching new initiatives can help small businesses remedy their cash flow problems.

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