One of the most challenging aspects of running a small to medium-sized business is managing your cash flow in such a way that you always have enough money to pay for all of your operational needs. This is especially true for businesses that extend credit to their customers as a convenience and to encourage repeat business. Obviously, in the challenging business environment that is common today, everything that business owners can do to retail business matters, but when you are waiting to collect monies based on outstanding invoices, the time in between payments can seem like forever.
Get Access to Your Cash Flow Quicker
These days smart business owners have turned to companies like Bibby Invoice Discounting as a way to help free up their cash flow and provided the products and services that their customers have come to expect when dealing with them. As a business, there are a very few changes that need to be made to the way that you conduct your sales and other aspects of your business operation. You still deal with your client and make the sales, but the only difference is instead of sitting around waiting for Net 30, Net 60 or Net 90 to collect payments on the goods you have sold, you turn your invoicing over to Bibby. Based on the invoice, they will advance you up to 85% of the total you are owed by your customers. Typically, upon receipt of your active invoices, they will get you your funds within 24 hours of receipt, so their turnaround time is much faster than waiting for your client to pay their bill.
Manage Your Funds More Efficiently
One of the greatest advantages of a service like this is that you have nearly instant access to the funds that are owed you. This makes life a lot easier for the people in your accounting department. Instead of having to juggle funds to pay for this or cutting corners here to pay for that, your accounting department can write checks to pay for things like inventory, supplies, payroll and other expenses confidently. As long as you have billable invoices that qualify for the services, you can receive payment for them quickly and without a lot of hassle. When your customer pays you the balance on the invoice, the remaining 15% is paid to you, minus a small fee to cover the convenience of using their services.
Bad Debt Protection Adds a Layer of Safety to Doing Business
If you have been approached by a new business that is seeking a credit account with you, but you are unsure of whether to give it to them, you can rely on the same company that is doing invoice based advances to use market intelligence and set appropriate credit rate limits before you make any agreement with them. By doing this, they are helping you do better business even with untrusted entities that you have never dealt with before. This makes business better for everyone involved.