Establishing a startup business is never an easy task for any ambitious entrepreneur. Finding the right financiers and convincing them to invest in your business can be a tall order. Even with the right connections, there is no guarantee you get the type of results you desire. The last thing you want to do is look in the wrong direction. This can be a waste of both your time, energy and money. You are probably visiting prominent banks to see if the officials provide you with loans. Alternatively, you could also be knocking on the doors of popular venture capitalists. Many financial experts say you should be thinking outside the box and exploring other option. One of them is invoice financing.
Jon Mckee Queen Amatex Capital – Is invoice financing a viable option for your business?
Jon Mckee Queen is a reliable financial expert working for Amatex Capital. He has valuable years of experience under his belt. He specializes in the fields of corporate finance, business law and investment. He points out the following 3 important reasons why young entrepreneurs should consider opt for invoice financing:
- Readily available cash
Entrepreneurs generally opt for traditional bank loans to finance their business. The process of obtaining funds via this method is time-consuming. Such business owners first need to fulfil the stringent eligibility requirements the officials of such organizations lay down. Moreover, they need to fill up numerous forms and present necessary documents on demand. The people in-charge of the departments dealing in such matters will then scrutinize the necessary paperwork. Only then will they sanction the loan. The Jon Mckee Queen Amatex Capital team of experts say this is not so in the case of invoice financing. In this case, the financier will ensure all the relevant invoices are in order. He will proceed to assess the creditworthiness of your clients. If everything is to his satisfaction, the lend you the money.
- Gives a boost to your account receivable collection efforts
With invoice financing, you can expect to receive cash equal to 90% of your outstanding clients’ invoices. The financier you choose to collect this money will approach such slow-paying customers. He/she will produce the necessary paperwork and ask them to pay up your dues. On receiving this sum of money, he/she will deduce his/her remunerations and expenses. After this, he/she will handover the remaining amount to you.
- Prevents you from incurring unnecessary losses resulting from irrecoverable debts
Invoice financing helps you to expediate the process of recovering your outstanding dues from your slow-paying clients. This implies you are utilizing your organization’s own current assets to finance its market operations. This is a better option to applying for a loan from a bank. In many cases, you may have to provide a collateral to get the funds you need.
The above 3 important reasons go to show the invoice financing is a necessity for young entrepreneurs. The Jon Mckee Queen Amatex Capital team of experts say this mode of finance give them the funds they need. Moreover, they don’t have to incur any unnecessary debt to obtain this money. They are basically using their current assets. This offers them a win-win situation.