Commercial financing for small to mid-sized businesses requires innovation. Business owners must be pragmatic in regards to growing their businesses. But, additionally they need money when opportunity comes knocking. One way they’re taking control of the business growth is using a commercial financing process which allows them to auction off their accounts receivable.
Here’s how it works:
1. Apply online – The receivables auction marketplace offers an application for membership online. The tiny to mid-sized company owner can fill this out in about 15 minutes. Once the application form and necessary financial documents are received, approval for membership takes about fourteen days on average.
2. Download auction application – Once approved for receivables trading, the brand new seller can download the application form to their computer. This Business Loans Dorset desktop application provides access to the live, online receivables auction platform where buyers and sellers have 24/7 access to auctions and transactions.
3. Choose invoices – Now, the vendor is ready to find the accounts receivable they want to post for auction. So long provided that the full total auction amount exceeds $10,000, the vendor can post any commercial invoices they want.
Tip: The easiest way to obtain cash quickly and efficiently is to create invoices of well-known, investment-grade account debtors with great credit histories. These tend to obtain snapped up quickly and receive the most effective rates of capital.
4. Set parameters and post – Owner maintains control by setting the parameters of the auction. Owner decides the minimum advance amount they’ll accept from bidders, the maximum discount fee they’ll pay and the length of time the auction will last. Owner can decide to perform it from 3-10 days.
5. Sale transaction occurs – There are two ways this will occur. Once the auction closes, the Buyer with the highest bid that fits the parameters set by the vendor wins the auction. The other option is that the vendor can set a “Buyout Price “.This is similar to the “buy it now” option on eBay. When a Buyer agrees to the “Buyout Price” the auction is immediately closed and awarded to that Buyer.
6. Get commercial financing fast – Once the sale experiences, the funds are electronically deposited into an account for the seller. This happens within 24 hours of the auction close.
With money in hand, possibly in less than one day, small to mid-sized business owners give themselves an advantage on the competition. They have the methods to grow their business now in place of waiting for invoice payments ahead in. Commercial financing utilizing their accounts receivable allows them to tap into funds that normally take 30-90 days ahead in.
Typically, about 60% of a small business’working capital is sitting dormant in the proper execution of invoices. Put these assets to work by getting this money now in place of later. Through invoice financing, small to mid-sized business owners can control the fate of the ventures with little risk, few restrictions and total control. Opportunities won’t wait.