Invoice Financing for Small Businesses

  • November 9, 2020
  • Written by : Elizabeth Beall

As business owners ourselves, we know how happy it makes you deliver great outcomes to your clients, whether this being through a product or service. In fact, continuing to deliver great results is one of the keys to having and maintaining a good working relationship between you and your clients.

The cherry on top to this relationship is a seamless payment system; a client would never be late in delivering, and you, as a business owner would never have to ask or bother for payments again. 

If only it was that easy…

Sometimes in business, you have to roll with the punches. Clients won’t always know when their equipment is about to breakdown or the exact amount of revenue they will receive at the end of the month and these things make it more difficult for businesses and clients to establish a seamless payment system; not everything is foreseeable, and because of that, the financial aspects of doing business together are sometimes done at leisure.

To put it simply, business owners need a constant stream of revenue and reliability, just the same as clients need flexibility and understanding in payment expectations due to unpredictable happenings in the business.

How does a business continue operating successfully and efficiently despite an imperfect consistency of payments from clients? 

Invoice financing

It’s common for small businesses to need money for a short amount of time for expenses like payroll, bills, inventory, and rent. This kind of financing could be your answer to your day-to-day costs for operation. 

Your business must keep moving and be able to function regardless of whether or not a client has paid you. Invoice financing, or capital that is forwarded to you based on your accounts receivable, is the best way to do this.

How does it work?

At REIL Capital, “the invoice itself serves as the collateral.” Compared to a traditional bank that would require an outstanding credit score, multiple years in bank statements, a long-winded application process, including many more mandatory documents, we’re simple.

Your credit score is unimportant and the number of things we require, we can count on one hand. We ask you to complete our three-minute application. Also, send us three months of business bank statements. Including, an accounts receivable aging report, your business profit, and loss statements, and your business balance sheet.

What else should you be aware of? 

Invoice financing has many advantages for a small business owner, but the best advantage is the speed. Businesses can have funding in their accounts in as little as three days. The only disadvantage is slightly higher fees or rates.

What are the qualifications?

  • $250,000 in annual revenue
  • 1+ year in business
  • Unpaid invoices

Invoice financing is a common option for small business owners. Working capital is essential to not only operating your business but also feeling comfortable in your business. Feel confident in your day-to-day decisions by securing the extra amount you need.

If you’re ready to capitalize on outstanding invoices and bypass the slow payers, give us a call. How does 90% of the invoice in your account in an average of three days sound?

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