As cities and states begin a slow reopening after what seems like a long lockdown, businesses are looking to make up lost ground. Many businesses have experienced diminished revenue, and it may seem like starting from square one, even for mid to large-sized companies. But the road to business recovery does not need to be filled with debt, loans, or impacted credit.
Loans Are a Catch-22
Businesses still need working capital to cover payroll, bills, inventory, transportation, and more. Not all businesses were able to get Paycheck Protection Program (PPP) loans, and others are still waiting to see the funds they applied for months ago. At the same time, lenders are tightening their requirements, making it more difficult for businesses to get the capital they need. However, taking out loans right now can leave businesses in a precarious situation. Extra debt reduces cash flow, because a portion of the revenue is needed to repay the balance plus interest. Also, not many businesses can afford to lower their credit ratings by taking out loans. Successful business recovery relies on avoiding debt, improving cash flow, and preserving credit ratings.
Business Recovery Simplified
Improving cash flow and building up working capital does not require loans or putting debt on the books. Invoice factoring provides a fast and transparent solution that businesses can use to recover and make up for lost time after experiencing a lockdown due to the coronavirus pandemic. When a business makes a sale, an invoice is generated. Instead of waiting 30 days or more to receive payment from customers, the business submits the invoice for factoring. The invoice is then converted to cash, minus a small fee, and the funds are made available within 24 hours. The simple transaction allows businesses to avoid debt while also preserving their credit ratings. The fast turnaround on invoices allows businesses to recover quickly and build up working capital.
Get Started Today
Single Point Capital makes business recovery easy with our factoring services. If you want a head start on improving your cash flow without the burden of debt-based financing, contact our offices today.