Do you own a business in Wisconsin? Haven’t been able to obtain a business loan to fund your company’s growth? Growing your company with a business loan has a number of advantages but can at the same time be very challenging. For example, many small business loans:
- Are hard to apply for – requiring a lot of historical/past information
- Take a long time (sometimes months) to get
- Generally best suited to purchase capital goods
An alternate source of funding called invoice financing can be used to fund growing companies. It’s a type of business financing that has a number of advantages:
- It’s relatively easy to get
- Can be set up quickly
- Can help cover business operational expenses
- Dynamic – can grow with your company
Please read our qualification criteria to see if we can help you. We can work with companies based in Wisconsin and have clients in the USA and in Canada
Qualification criteria
- We can only finance companies/businesses
- The company must be in operation. We work with startups as well.
- You must have commercial/government clients (we can’t finance retail companies)
- You must use the working capital to pay suppliers, employees or company expenses
The problem: Can’t wait 30 to 60 days to get paid by clients?
One of the issues of doing business with commercial or government clients is that they always take up to 60 days to pay their invoices. Although larger companies can usually afford to wait that long – many can’t. Most small and medium sized companies have pressing obligations and a tight budget – they must pay employees, rent and cover other expenses. As a matter of fact, most company managers would not be looking for a small business loan if their customers paid their accounts receivable quickly.
The solution – Invoice financing
We can provide your company with an advance payment on your slow paying accounts receivable and eliminate the 60 day wait to get paid. This can usually reduce or even eliminate working capital problems, improve cash flow and help pay:
- Corporate suppliers
- Employees and contractors
- Rent and other operational expenses
The biggest advantage of financing your invoices is that it gives you predictable cash flow and puts your company on a more solid financial standing. From commercial credit standpoint, we consider your clients to be your biggest and best collateral. That means that companies with a solid roster of credit worthy clients can thrive with invoice financing.
Most companies that have commercial sales can qualify for this type of financing, provided their clients have good credit, their invoicing practices are good and they are free of liens and encumbrances.
How does invoice funding work?
Invoice financing is simple to use:
- After completing your work (or delivering product), you invoice your client
- Your company gets an immediate 80% advance on the invoice. This varies by industry.
- Once your client pays for the invoice, you get a second advance of 20%, less the financing fee.
Industries that can be financed in Wisconsin
Invoice financing is very flexible and can be used in a number of industries. Some industries that benefit from these services include:
Would you like an invoice financing quote?
Please fill out our form for an instant quotation.
For more information
We have assembled a small business financing library with articles about invoice financing. Some articles include: