Entrepreneurs are always looking for convenient ways to expand their market operations. This is how they expect to ensure the growth of their establishments. One way of achieving this objective is by finalizing in lucrative contracts with prominent organizations. These could include government agencies or corporate enterprises with a good reputation in the market. These concerns generally have a good track record of clearing all their dues on time. This eases the pressure on the cash flow position of these businessmen. However, they do come across businesses with no prior history offering them such deals. In such a situation, these proprietors should opt for invoice financing.
Why should entrepreneurs opt for invoice factoring?
Arnon Dror is a prominent figure in the world of international business and finance. This Master of Business Administration graduate from Hebrew University is former Vice-President of US Channel Group. His job profile with this multinational company would involve handling the finances of their Xerox division. He specializes in fields as diverse as cashflow management, international taxation, corporate mergers, turnovers and ERP integration. People who know him say he is a result-oriented executive. They hold him responsible for the success of many prominent corporate enterprises. They even admit hardly any professionals falling under the Arnon Dror age group can claim his levels of success in the field.
This financial expert says entrepreneurs are always in need of funds to execute lucrative contracts. Many of them are not very comfortable with opting for traditional commercial loans. These businessmen often complain it is time-consuming progress. They have to fulfill the stringent eligibility requirements their lenders lay down. On many occasions, they have to produce numerous documents and fill up plenty of paperwork. Even then, there no guarantee these proprietors will get the sum of money they require. This is no case with invoice factoring. He points out the following 3 important reasons why they should opt for this mode of finance:
- Instant cash
Entrepreneurs can get the money they need to operate their businesses almost instantly. In most case, they can finalize the agreements with their service providers within 24 hours. This helps them to ease the pressure on their establishment’s cash flow position. It is a far cry from most traditional modes of financing like a line of credit or commercial loans.
- No debt
Many businessmen can raise the money they need to run their establishment through debt. This is a viable option open to them. However, they need to ensure they generate enough revenues to repay it on time. If this is not the case, these proprietors could be in deep trouble. In the worst-case scenario, they could go into liquidation. However, this doesn’t happen of these entrepreneurs choose to use invoice factoring.
Under invoice financing, entrepreneurs can get access to as much money as they want. They just need to ensure the sales bills they issue to their customers are in order. Moreover, they don’t have to lose sleep over timely collections. Their service providers take care of such issues.
Invoice factoring can work wonders for entrepreneurs. These businessmen can get as much money as they need under this mode of financing. They just got to focus on operating their business efficiently. If the proprietors may have apprehensions about the viability of the scheme. In such a case, they should see the Arnon Dror video on YouTube. They’ll understand the above 3 important reasons prove this point beyond any reasonable doubt.