Step 27. Apply For Invoice Financing

While some business owners believe this type of financing causes their clients to have a negative view of them, this can’t be further from the truth. In fact, many businesses use invoice financing with great success. Given the higher interest rates (15%-35% APR) compared to other types financing, these loans are great when your business is need of cash immediately and for a short period of time.

Invoice Financing Explained

Because credit is extended based on your accounts receivables, your client’s credit score is usually more important than yours. Invoice financing can be a good option when you need a financing but haven’t yet built up enough credit history to get approval from a traditional lender.

  • Who Should Use Invoice Financing:

    – Businesses that deal in B2B
    – Businesses that have a seasonal cycle
    – Any B2B Businesses who have well-known clients
    – Businesses with extended billing cycles including retail, manufacturing, clothing, etc.
    – Businesses with unusually large invoice amounts

  • Advantages of Invoice Financing:

    – Quick and easy approval
    – Fills cash flow shortages
    – Simple pricing model

  • Disadvantages of Invoice Financing:

    – Rates are higher than other financing types
    – Invoices are required for collateral
    – Must have B2B or B2G (government) business

Apply For Invoice Financing

Lines of Credit
– You can get approved in as little as a day
– For lines of credit, you need to be in business for at least six months
– Minimum annual revenue of $25,000

Click Here To Apply

Explore other Invoice Financing options CLICK HERE

Pay careful attention to recommendations posted on the “Learn More” link before you apply.

To Do List To Complete In This Step

1. Review various lenders and their terms and apply for business funding.

1. Pay careful attention to recommendations posted on the “Learn More” for each lender.

Invoice Financing
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