Commercial financing for small to mid-sized businesses requires innovation. Business owners must be pragmatic as it pertains to growing their businesses. But, in addition they need money when opportunity comes knocking. One of the ways they’re taking control of their business growth is with a commercial financing process that 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 small to mid-sized company owner can fill this out in about 15 minutes. Once the application and necessary financial documents are received, approval for membership takes about two weeks on average.
2. Download auction application – Once approved for receivables trading, the newest seller can download the application for their computer. This Business Loans Dorset desktop application provides use of the live, online receivables auction platform where buyers and sellers have 24/7 use of auctions and transactions.
3. Choose invoices – Now, the seller is ready to find the accounts receivable they would like to post for auction. As long as long as the full total auction amount exceeds $10,000, the seller can post any commercial invoices they want.
Tip: The simplest way to get cash quickly and efficiently is to post invoices of well-known, investment-grade account debtors with great credit histories. These tend to get purchased 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 will accept from bidders, the most discount fee they will pay and how long the auction will last. Owner can decide to operate it from 3-10 days.
5. Sale transaction occurs – You will find two ways this can occur. Once the auction closes, the Buyer with the best bid that meets the parameters set by the seller wins the auction. The other option is that the seller can set a “Buyout Price “.This is similar to the “buy it now” option on eBay. Each time a Buyer agrees to the “Buyout Price” the auction is immediately closed and awarded compared to that Buyer.
6. Get commercial financing fast – Once the sale experiences, the funds are electronically deposited into an take into account the seller. This happens within 24 hours of the auction close.
With profit hand, possibly in as little as 1 day, small to mid-sized business owners give themselves a plus over the competition. They have the methods to grow their business now in place of looking forward to 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 company’working capital is sitting dormant in the form 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 their ventures with little risk, few restrictions and total control. Opportunities won’t wait.