Here is a tip on how to improve your cash flow position... Use the not-so-well-known funding option called Factoring. Factoring is a simple buy-sell process. You sell your invoices to a factor for an agreed price and they give you a cash advance, upfront. Then when your customer pays in 30+ days you get the remaining amount of money left (minus fees.) Many businesses rely on Factoring to manage their accounts receivable. Additional benefits of factoring include, no business plan needed, approvals are based on the credit-worthiness of your customers and credit lines are unlimited. If you would like to learn more please feel free to contact me anytime!
this method is called invoice factoring and it used by many businesses to increase cash flow. A really good way to raise cash for your business especially in times such as these.
Factoring is not a decision to be taken lightly. I'd consider getting the help of an independent financial advisor before undertaking it. Once you’ve started factoring it’s quite difficult to stop. However, I’ve seen it worth quite successfully for manufacturing businesses that need to buy expensive materials to manufacture finished products.
Keep in mind that factoring is not your cheapest option. It is one of the more expensive financing vehicles. Also, make sure that you know whether your arrangement with the factor is with or without recourse. While the first post indcates that you are selling the invoices, if it is with recourse and your customer does not pay the invoice, you, the seller must pay back the money to the factor.