Commercial financing for small to mid-sized businesses requires innovation. Business owners have to be pragmatic when it comes to growing their businesses. But, they also need money when opportunity comes knocking. One way they’re taking control of these business growth is by 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 and necessary financial documents are received, approval for membership takes about a couple of weeks on average.
2. Download auction application – Once approved for receivables trading, the newest seller can download the application with 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 seller is ready to choose the accounts receivable they wish 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 best way to get cash quickly and efficiently is to publish invoices of well-known, investment-grade account debtors with great credit histories. These tend to get purchased quickly and receive the best rates of capital.
4. Set parameters and post – The seller maintains control by setting the parameters of the auction. The seller decides the minimum advance amount they will accept from bidders, the most discount fee they will pay and how long the auction will last. The seller can decide to run it from 3-10 days.
5. Sale transaction occurs – You will find two ways this will occur. When the auction closes, the Buyer with the best bid that fits the parameters set by the seller wins the auction. One 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 to that particular Buyer.
6. Get commercial financing fast – When 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 less than 1 day, small to mid-sized business owners give themselves an advantage on the competition. They have the way to grow their business now as opposed to awaiting invoice payments ahead in. Commercial financing using 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 as opposed to later. Through invoice financing, small to mid-sized business owners can control the fate of these ventures with little risk, few restrictions and total control. Opportunities won’t wait.