If you are the owner of a small-to-medium size business, one of the things that you will have to learn early-on in doing business is learning to manage your working capital cycle. Defined as the time taken by an organization to turn its own net current assets and current liabilities into cash, receivables, payables, and usable inventory. Doing this successfully is essential to staying in business and might be a small business working capital solution.
If your business doesn't have enough working capital, it's not going to continue to operate. And, shortages put a strain on productivity. Continuous strains on productivity just slows your systems down which leads to even less working capital. It's a vicious cycle which usually leads to you having to permanently close the doors.
Learning to successfully manage this working capital cyle is important. It takes trial and error to execute a successful working capital process.
A Business Factor to Consider Instead of Financing Is Accounts Receivable Factoring
Accounts receivable factoring, also called Invoice factoring, is an alternative to a loan. It does not add debt to your business profile. It will shorten the working capital cycle and improve cash flow. This factoring process enables your business to sell its unpaid receivables and get immediate cash - and get it very quickly.
Let's say that you have a business that sells goods and services to other business owners. Your business is on a continuous cycle of finding raw materials, making them into a product, and then selling them. After selling, your business has an invoice that you probably have to wait 30, 60, or 90 days to collect. That money is now tied up.
During this time, your business has to continue to operate. You have to find more raw materials, make more products, and find new buyers. All of this costs more money and many businesses can not wait for their unpaid invoices to be paid.
Accounts Receivable Factoring Is a Solution to Your Working Capital Problem
With Receivables Factoring from Caps Funding, LLC, you can collect on unpaid accounts receivables in as little as 24 hours instead of waiting 90 days. Caps Funding will then assume the responsibility of collecting those unpaid invoices from your customers.
By using Caps Funding, LLC you can have cash almost as fast as you can issue invoices. Don't slow your company's productivity down.
Using the capital from ,Caps Funding could be the answer to your working capital cycle problems. Call on your telephone, Charles at Caps Funding, LLC at (803) 429-3686.