It’s one of life’s most rewarding experiences to be a small business owner. It can also create more stress than anything you’ve ever imagined.

Did you properly plan your business before starting out? Or are you a seasoned business owner who “did everything right” and yet your company is not thriving as you had expected? Are you trying to figure out what happened and feeling pretty lonely in the process?

As a company goes through the cycle of generating revenue and paying its bills, it can often be perplexing that cash flow problems continue to mount in the negative rather than in the positive.

Normally, a small business owner works their business in one of two ways. They either charge their customers cash on deliveryor they invoice them. If they request payment as soon as they deliver the product or complete the service performed, they may not be able to find customers that will allow them to grow their company as they once thought they could. They may be stuck with customers who don’t mind paying on the spot in cash, as long as the charges are relatively low.
So the small business owner looks for bidding opportunities for big corporations and is thrilled when at last a bid is accepted. That’s fine until it comes time to be paid. In the real world, small businesses that sell to big companies should expect to be paid very slowly. The gap between expected and actual pay days can adversely affect your small business cash flow.

Yet there are alternatives, ways you can manage risk and cash flow at the same time, and that’s why Bentwood Financial exists: to inform you of the alternatives and provide opportunities that allow you to achieve your goals.

One of the major benefits of invoice factoring or accounts receivables financing is that it provides the ability to get paid quickly when you invoice your customers. In most cases, you can get paid the same day or at least within 24 hours. This enhances your cash flow, which in turn becomes a tool for advancing your company’s interests. You can put the available cash to work in an infinite variety of ways to make your organization stronger and more profitable.

Keeping an eye on cash flow – by checking your company’s Balance Sheet regularly, for instance – is how you steer your business confidently towards increased profits. With invoice factoring, that healthy cash flow translates into growth patterns like:

  • Never missing payroll,
  • Actually paying yourself at last!
  • Acquiring materials when needed,
  • Taking on bigger clients/projects,
  • Taking advantage of bulk discounts from suppliers,
  • Attracting new customers with liberal payment terms,
  • Flexibility, so you can afford reasonable risks.
You may not yet be using invoice factoring. Maybe this is the first you have heard of it. But has your competition been benefiting from it for some time already? Can you really afford not to factor?