Have you ever tried invoice financing? If you run a business where fall is your busiest time of the year, you may be spending your days ordering inventory and beefing up stock to keep up with customer demand. Whether this means you’re purchasing school supplies, ingredients for pumpkin pies, or Halloween costumes, you also need to stay on top of paying your bills, salaries and marketing expenses.
The question becomes this: How do you manage all of these costs while keeping your cash flow, well, flowing? Although there are many ways to ensure that you can meet your overhead this fall, invoice financing through Fundbox may be the best way to help you bulk up on inventory fast during this busy time of year.
What exactly is invoice financing?
Unlike a small business term loan where you essentially borrow a lump sum and make payments plus interest to pay it back, invoice financing is an alternative financing solution that advances the full value of your unpaid invoices. The funds are deposited into your bank account as soon as one day later, unlocking cash flow you can use now.
To take a closer look at how invoice financing works through Fundbox, let’s walk through 5 easy steps to get started:
- Set up a Fundbox account.
- Select and click to connect your bookkeeping app.
- Choose the invoice(s) you’d like to clear.
- Funds are sent to your business bank account in as little as a day.
- Make weekly payments to Fundbox to pay back these advances. The payments are calculated by adding 1/12 of the invoice value plus a small fee. For example, on a $1,000 invoice, your weekly payments will be about $89 for a 12-week repayment plan, which includes $83 for the invoice value plus about $6 in fees. If you elect for a 24-week repayment plan, you’ll pay about $48 a week, which includes $42 for the invoice value and about $6 in fees.
The fees may vary, so the best way to check on this amount or on your weekly payment is to go to the Fundbox dashboard before you confirm the invoice you intend clear.
If you’re still wondering whether invoice financing is a good idea for your business, take a look at some other perks:
Yup, no more waiting 30, 60, or sometimes 90 days to get paid. You’ll get paid much faster, allowing you to meet your seasonal inventory demand.
Registering for an account is free and easy—no subscription, origination, or early repayment fees.
You can choose to repay over 12 or 24 weeks. If you pay it off early (with no repayment penalty), Fundbox will waive all the remaining fees. So, if you pay back an advance on week 5, for example, you will only pay fees for weeks 1–5. You can also pick and choose which invoices you’d like to get cleared through Fundbox. For instance, if you have a client who pays immediately, you can skip over this client’s invoice and just select other invoices to be cleared.
How will invoice financing help me?
As you already know, invoice financing will help you clear invoices faster so that you have the available funds to order inventory and meet your high seasonal demand.
Here are some other ways invoice financing can help your busy business this autumn:
- You can readily pay employee salaries , especially if you need to hire additional seasonal staff.
- You can buy new equipment or computer software to help meet your high demand.
- You can pay your bills on time.
- You can implement marketing programs to help increase business even more.
Ready for more?
Apply for funding and find out if you qualify today