Yes, alternative financing options, such as invoice factoring, can improve cash flow. Invoice factoring involves selling outstanding invoices to a factoring company for immediate cash, rather than waiting for customer payments.
How Selling Invoices Improves Cash Flow
Advantages of Invoice Factoring:
Get cash immediately, which can cover expenses or reinvestment needs. This helps bridge cash flow gaps without taking on traditional debt.
Consider Trade Credit and Lines of Credit:
Trade credit lets you pay suppliers later, keeping cash on hand, while lines of credit provide quick access to funds if cash is tight.
Merchant Cash Advances:
These advances offer quick cash, repaid from future sales. While useful, they tend to have high fees, so use cautiously.
Want to explore cash flow financing options? 786 Venture CPA can assess your needs and recommend the best options, from invoice factoring to trade credit, to ensure cash flow remains strong.