Lengthy business cycles can create difficulties for their cash flow
Some businesses have a fairly consistent cash flow. Shops, for example, make sales daily. While they have some sales fluctuations, they can generally count on making at least some money every day. They get paid as soon as they provide the sale or service. These businesses have a steady, consistent business cycle.
Other businesses, however, have an elongated business cycle, which means that they perform a service and then have to wait to receive a payment. Long stretches of time can go by in between a service and a payment. Some business owners have to wait weeks or even months before they get their money. When entities don’t pay their invoices on time, then the service providers are forced to wait even longer.
Worse, these long stretches happen to those who provide the most important services: doctors, repair technicians, and construction contractors, just to name a few. If all of this sounds familiar to you, then how can you keep your cash flowing in between service and payment? For many business owners, the answer is Accounts Receivable Factoring.
Compared to other loan types
|Loan types||Max Amounts||Rates||Speed|
|Merchant Cash Advance||$7.5k – $1m||Starting at 1.09||1-2 business days|
|SBA Loan||$50k-$10m||Starting at 5%||3-5 weeks|
|Business Term Loan||$10k to $5m||Starting at 5%||1-3 business days|
|Business Line of Credit||$10k to $250k||Starting at 8%||1-3 business days|
|Receivables/Invoice Factoring||$50k-$10m||Starting at 5.8%||1-2 weeks|
|Equipment Financing||Up to $5m per piece||Starting at 5%||3-10 business days|
|Revenue Based Business Loans||$10K – $5m||Starting at 9%||1-3 business days|
United Capital Source Can Help You Factor Your Receivables
Do you have invoices and need to shorten your business cycle? Then let’s talk about starting our partnership today. United Capital Source is ready to help. Have any questions? Then please feel free to give us a call, shoot us an email, or start an online chat. Otherwise, you can start your online application today. We look forward to working with you!