One problem that most small businesses in the St. Petersburg area face on a monthly basis is cash flow problems. Bank loans are lengthy and costly over time, and not making payroll or paying suppliers hurts your business. A simple, effective, and practical way to manage cash flow issues is through financing accounts receivable.
The simple application process, the ability to have cash in your account in days, and the fact that this is not a loan makes the process of financing accounts receivable very attractive. Of course, there are some requirements to be approved for this type of funding, but most small businesses will have little difficulty in meeting the criteria.
Requirements
When working with an established, experienced factoring company the requirements for application are minimal. A St. Petersburg business will need to have $25,000 or more in accounts receivable to US based clients. In addition, those clients will need to be credit worthy, as the factor uses this information, not your business credit score, to determine if the application will be approved.
Getting Approved
Different companies offering financing accounts receivable services will have slight variations in the application process. It is important to check there is no fee associated with the application and that you are not required to enter into any contract for factoring services. Without being tied into a contract, you have full control over the amount you choose to factor and the duration of the working relationship.
With a simple online application that takes just minutes to complete and submit, you are on your way to being approved. Top factors will also provide applications over the phone, allowing you to ask any questions you may have at that time.
Once the application is completed the company offering financing accounts receivable will check the creditworthiness of your customers and verify the accounts receivables, then grant approval within 24 hours.
Within just a few days a percentage of the value of the accounts receivable will be wired to your bank account and you will have immediate access to the funds to use as you choose.
Then, after the customer as paid the invoice to the factor, the factor will deduct the pre-set fees and forward any remaining balance to your account.
As financing accounts receivable in St. Petersburg includes no interest or repayment as you would have with a loan, budgeting and financial management becomes very easy, allowing your business to thrive.
