Every business at one time or another will find themselves and need additional capital. Maybe this won’t come about because sales taken unexpected dip, or the company wants to do a quick expansion into new markets, or there’s been legal issue requiring large amounts of capital to be redirected towards the company’s law firm.
When these or other similar issues happen at a company, they first look for capital from the usual sources including existing investors, banks and financing companies. Existing investors are great first choice because you’ve already got money from them, they understand your business, and they don’t want to lose their additional investment.
For this reason often your existing investors will provide you with additional capital. The question always comes down to what they want for the extra money. Some might want more equity than you are willing to part with, and others might request a high-interest for loan they are willing to make to the company.
In terms of banks and finance companies, this is always a tricky option. Thanks want to see long-term successful performance and often want collateral for any money they provide to you. Finance companies can be less strict, but their interest rates are higher and they tend to loan less capital. This can often leave a company in a tough situation and scrambling to find ways to come up with money to meet the current challenges. In the situation accompanied needs to be creative about financing. Here is an often overlooked financing source that companies should consider.
Streamlining Your Receivables Collection
Receivables are the revenue that clients owe to you but that you have not collected yet. Typically clients will pay you on a contract term which may mean that money owed may not be received for 90 days. In addition many clients will delay payment further than the 90 days or renege on paying your invoice. This owed revenue if it can be collected, is a great source of funding for you. The challenge for company is finding ways 2 increase the speed of you receiving your pipeline Revenue and getting clients would not pid you, to pay.
Receivables Performance Management works closely with companies to assist in streamlining their receivables. They provide a valuable mechanism for any businesses in the bankcard, financial, telecommunications, utilities, retail, healthcare, commercial, state & local government, small balance accounts and national legal services – (ACA Certified MAP attorneys) industries. Their services include:
- Telemarketing Services
- Customized Dunning Notice Services
- Outsourcing and Pre-Collection Services
- Early Age Reactivation Services
- Late Stage / Post Statute Services
- Small Balance Portfolio Services
- Inbound and Outbound Services
Their focus is to get your company the outstanding balances owed and to set up an efficient way to manage billing and collections. Utilizing Receivables Performance Management can secure for your company needed capital at a critical time with no outlay or additional company equity or paying high interest rates.