This end of the year seems more challenging than many in the past. You have looked at the numbers, made adjustments, brainstormed solutions. In the end, however, you are not certain what you can do to make the payroll commitments that you have. It is important to meet these obligations, but you also know that there is only so much money available. As you wait for the payments for your own creditors to arrive, it is important to make sure that you find a way to make the payments your company owns on time.

Fortunately, accounts receivable financing companies offer a way for their clients to access the capital that they need when it is needed. Recent estimates indicate that if all invoices were paid on time, U.S. small businesses could collectively hire 2.1 million more employees, which would reduce unemployment by 27%. The burden of unpaid invoices is difficult to manage for companies of all sizes, but they are especially challenging for smaller businesses. With the help of accounts receivable financing companies, however, a company can get access to the capital that is needed to meet payroll and other financial responsibilities.

Business and Invoice Factoring Services Are a Viable Solution for Many Companies

Unfortunately, nearly 60% of invoices are paid late, and businesses of all size need to deal with this fact. It is fortunate that invoice factoring offers a type of accounts receivable financing that converts outstanding invoices due within 90 days into immediate cash for a small business.
Working capital funding strategies offer the best solutions for businesses that are trying to meet their own financial obligations while they are at the same time waiting for payments that are owed them. Small businesses, typically defined as businesses with fewer than 500 employees, account for 99.7% of all business in the U.S., so it is important to make sure that these businesses have every advantage they need to succeed. Not surprising, a recent U.S. Bank study indicated that 82% of businesses that fail do so because of cash flow problems. Finding a solution to these cash flow hurdles can help more businesses be successful, and ultimately, succeed.