Business goals are important. They keep business owners focused and on track. No matter what your specific goals are, they are all stepping stones to achieving the ultimate result – business growth. Growing your business takes more than just hard work and dedication. It takes money. Working capital is often in short supply for many small businesses, so investing it wisely is crucial. While opportunities for growth may vary by industry, there are some key areas for investing that can benefit any business. Invoice factoring can help if the business budget is tight.
In today’s digital marketplace, this is one area in which every business owner should invest. A business website is no longer a luxury, it’s a necessity and a website alone will not fuel business growth. The internet has vastly expanded the pool of competition, making a strong online presence vital to remain competitive. A website is only one component of the digital marketing landscape on which business owners should focus; there is social media, content marketing, SEO (search engine optimization) and more. To make the most of an investment in digital marketing, you need to identify your target audience and what products, services and information they consider valuable and focus your market efforts on those.
It’s almost impossible to run a business today without utilizing some form of technology. It can compile and store business data, speed up production, improve customer service and increase employee satisfaction, all of which will contribute to business growth. From business equipment and software to automation and AI, technology is constantly evolving and often faster than a small business budget can keep up with. Still, it’s important to invest in and remain current with business technology. Otherwise, you could see business growth slow and fall behind the competition.
Employees are a business’ most valuable assets. Encouraging their growth through ongoing training is a wise investment. It not only will provide your business with a more knowledgeable and skilled workforce but it will also go a long way to boost employee morale, improve motivation and decrease the need for supervision. Investing in employee development makes employees feel valued and creates loyalty. This can increase tenure and reduce costly turnover, resulting in a solid return on the investment.
A small business typically operates with a small workforce. It’s not uncommon when there is a surge in business for the workload to increase and employees to feel overwhelmed. While your budget may not allow for additional employees, you don’t want to burn out your existing workforce. Outsourcing can be a cost-effective solution. By outsourcing some of the workload, you avoid the expense of hiring permanent employees such as healthcare, paid vacations, and other benefits and prevent your current employees from becoming overworked.
Small business owners often take on too many responsibilities and as a result, some tasks may not receive the attention or knowledge needed to see them through to success. You should evaluate each of your responsibilities and ask yourself “Am I the right person for the job?”.You do it when you assign tasks to your employees, so why not yourself? Whether it’s business legalities, tax preparation, social media marketing or any task that is beyond your area of expertise, it is more beneficial and cost-effective to hire a professional. If you take on the task and don’t do it properly, it could cost you much more in lost business or legal fees.
Whether it’s an unexpected business opportunity or everyday investment in business growth, it’s important to have the capital available to address it in a timely manner. While waiting for invoices to be paid, a business owner can miss out on a chance to move their business forward and push ahead of the competition. Invoice factoring can help you get the capital you need when you need it.
CapFlow Funding Group specializes in invoice factoring and works with a variety of businesses, large and small to fuel business growth. Our invoice factoring programs can benefit businesses in need of short-term working capital. We also partner with other lenders to provide funds for businesses that require financial services other than ours. Contact us today and find out how we can help you grow your business.
Like many other industries, security companies rarely get paid for their services up front. They are left waiting for invoices to be paid after the service has been provided. Terms on these invoices are typically 30,60 or 90 days and it’s not uncommon for clients to wait until the last minute to pay them. This can sometimes leave a security company strapped for cash. The overhead to run a security service company can be a big expense. The invoice factoring process can help bridge the gap between providing their service and receiving payment for it.
Waiting for payment on services rendered can become an issue when a company needs to purchase equipment, deal with an unforeseen emergency or simply meet payroll expenses.
Not having access to the necessary capital to handle any of these situations could prevent a company from accepting new business and drastically slow down business operations. The invoice factoring process provides multiple benefits that can help security companies keep their business moving forward.
While most business owners try to keep a certain amount of capital in reserve, sometimes that reserve isn’t enough or has already been depleted while waiting for invoices to be paid. Historically, many business owners relied on bank loans or lines of credit when they were in need of additional working capital. Following the 2008 financial crisis, traditional financial institutions severely tightened their purse strings when it came to approving small business loans and credit lines. More than a decade later, it hasn’t gotten much easier. The application process can take weeks or even months and approval rates remain low.
One of the biggest benefits of the invoice factoring process is that it can provide immediate working capital. This allows a business owner to react quickly to a variety of situations which could have a negative outcome if left unattended until outstanding invoices are paid. In many cases, the application process for invoice factoring takes only a few days and once approved, funding can be received in as little as 24 hours.
It’s not uncommon for a security company or any industry to have a hiccup or two in their credit history. Unlike with traditional bank financing, less than perfect credit isn’t an issue when applying for invoice factoring. The invoices to be factored are submitted to the factoring company and they look at the credit history of the clients who owe those invoices. Once the invoices are approved for factoring, the majority of their value is paid to the business owner. The invoices are then paid directly to the factoring company. Once they have been paid, the balance minus a small factoring fee is paid to the business owner.
Growth is the goal of every business and it requires consistent cash flow. Whether it’s new equipment, increasing staff or dealing with an emergency, not having the working capital to handle these expenses can cause business growth to come to a grinding halt. New clients requiring security services won’t wait until a company can afford to hire additional security staff or purchase the necessary equipment. If a security company can’t provide the services the client needs immediately, they will move on to a competitor. Not only is this lost business, but it can also damage a company’s reputation, all of which will negatively impact business growth.
Need access to consistent working capital to grow your security service company? CapFlow Funding Group may be able to help. Let’s talk. We specialize in factoring and will work with you to find the best funding solution to provide your business with immediate working capital. We service many different industries with a variety of different funding needs. Contact us today and find out how invoice factoring can help grow your small business.
