For many small businesses, fluctuations in income, supply costs, and market conditions can result in inconsistent cash flow. When working capital is tight, it can slow down your business.
Whether you are in manufacturing, transportation, distribution, or professional services, invoice factoring can be a key part of your ongoing cash flow strategy. Invoice factoring is a type of accounts receivable financing that converts outstanding invoices into immediate cash. This makes it a good solution for resolving short-term cash flow issues, providing quick access to the cash you need to purchase more inventory, hire seasonal staff, or take advantage of early payment discounts from suppliers.
How do you know if Summit Financial Resources’ invoice factoring is right for your business? Consider the following five benefits:
1 – Better Cash Flow Management
Invoice factoring uses your receivables as collateral, letting you harness the latent cash in your unpaid invoices. The process is simple: a factor gives you a line of credit using your outstanding invoices as collateral, and your loan is repaid as your clients pay those invoices. At Summit Financial Resources, we can loan up to 90% against your invoices, allowing you to stabilize your cash flow and cover the costs of day-to-day operations or unexpected challenges.
2 – Quick Access to Cash
Invoice factoring allows businesses to unlock cash from their invoices immediately. Summit Financial Resources can assess your business quickly and determine if invoice factoring is the right solution for your short-term cash flow challenges. If you are an established client in good standing, we can anticipate your needs and offer expedited funding, sometimes on the same day.
3 – Financing Flexibility
Summit Financial Resources specializes in lending programs designed to give small businesses like yours the flexibility to keep your company growing. In addition to your outstanding accounts receivable, we can consider inventory and equipment as additional collateral.
With our inventory financing add-on program, we provide a line of credit based on your physical inventory in addition to your accounts receivable. You pay it back when the inventory is sold through our invoice factoring program. Combining both products
4 – Additional Support Services
Summit Financial Resources offers additional support to help you manage your business finances. This includes services that work in conjunction with products like invoice factoring such as assisting in collection efforts to get your factored invoices paid faster.
Small businesses involved in our asset-based lending programs also have access to our proprietary online account reporting system. This service allows you to check daily transactions and track information on the total funds received and the invoices the money has been applied to. With Summit Financial Resources on your team, you can rely on us to provide as much or as little support as you need. We also respect your relationships with your customers, and we take special care to manage payment transitions smoothly and to handle all transactions with discretion.
5 – A Personalized Alternative to Online Lending
Online business loans have become a popular financing option with cash advance companies and online micro lenders providing capital to small businesses that otherwise could not secure credit. The technology used by these alternative players is fundamentally changing the way small businesses access capital, creating greater competition, convenience, and price transparency.
However, online lending is not for everyone. Many business owners working with unregulated, nonbank lenders have paid a price for speed and convenience. Alternative loans often come with APRs ranging from 20 to 80% and considerable penalties for not meeting repayment terms. Also, some online lenders do not offer savings for prepayment.
Perhaps just as important, these lenders are often volume-based and lack the personal touch of a relationship lender. For business owners seeking a partner who is invested in helping them succeed, Summit Financial Resources bridges the gap between easy, but expensive financing and lower-cost, harder-to-get loans. We create custom financing solutions with reasonable rates and structures that banks and other commercial finance sources cannot provide.
Our goal is to help companies with reputable customers and qualifying invoices overcome operational hurdles by ensuring they have a steady stream of cash. Invoice factoring is a simple strategy for providing working capital to fund payroll, respond to unexpected challenges, and seize every opportunity to grow.
Working Capital Financing is a few clicks away.
Summit Financial Resources specializes in working capital financing for small to medium-sized businesses that need increased cash flow. We provide working capital financing through invoice factoring, asset-based lending, inventory lending, and equipment financing.