One of the most common financing problems that businesses experience is when money becomes stuck in the sales cycle. “Sales” is not cash, and cash is what truly fuels the growth of a business. When businesses cannot liquidate money that is technically theirs because of their customers’ financial woes, preventing negative cash flow becomes the companies’ objective. Therefore, directing money toward new and necessary purchases or taking advantage of expansion opportunities is prevented, which can be very frustrating for business owners.
In today’s highly competitive business scene, no enterprise can afford to miss opportunities for growth or operational improvement simply because their money is caught in the sales cycle. These opportunities rarely strike twice – if a business misses the chance to take advantage of them, they are lost forever. This is why commercial banks have various solutions for clients that will allow them to get hold of the cash that is necessary for the advancement of their operations. These solutions include ideas on better payment schemes for customers, an improved collection system, and finance accounts receivable.
Among the three, finance accounts receivable provides the most certainty. It has long been known to improve cash flow and enhance forecasting. And for qualified clients, banks can provide up to 90 percent of invoice values. Other advantages provided by this financing solution include the availability of receivables finance in most major currencies and the assurance that they can be provided the day after application.
Now, when it comes to operations, receivables finance will not only ensure that the business can quickly grab profitable opportunities or investments; it can also help maintain good relations with suppliers because the money owed can be paid sooner and effective negotiations can be carried out to improve rates and terms. Business relations are very important, especially for companies that remain operational due to steady supplies.
It’s important to mention as well that with receivables finance, there’s always the option of only getting the amount of money that the business needs. This can definitely help in the improved management of resources.
Therefore, if your business has made sales but you’re having trouble liquidating the value of those sales (and as such, you are at risk of compromising your relationship with suppliers or you are prevented from implementing growth initiatives), consider finance accounts receivable. Set up a consultation with a banking representative who can thoroughly explain this financing solution’s terms and conditions, as well as the complete range of advantages it can provide for your business.
