Are you considering starting a new business? One of the key issues that arise for any new business is capital. For a new business, convincing a bank or investor to lend you money can be a challenge. However, there are other ways for a business to improve their cash flow.
About CBAC Funding
CBAC Funding was created to help other companies with many of their capital and cash flow needs. Many companies are in need of immediate cash. They may have a large book of accounts receivables, but this doesn’t help with an immediate cash flow problem.
CBAC Funding can assist in taking invoices and providing upfront cash to businesses in need. They have a vast network of private investors and institutional funds and offers an invoice factoring exchange that can provide some much needed capital to a new business.
What is invoice factoring? Invoice factoring is a method that can help a business improve their cash flow.
Factoring in a business setting simply means the practice of selling accounts receivables to a third party. This is a situation when a customer owes you money. You can sell that account to someone else to collect the invoices and receive most of the money that you are owed right away.
The factoring company will pay you generally 80-90% of the money that you are owed. They then work on collecting on those accounts and pay you the balance, less a minimal fee once they’ve completed the collections process.
This can be a real win win situation for a business that needs to improve their cash flow right away.
Any small business has faced a situation where they have invoices that they can collect, however they have not yet been paid. Bills are pilling up, but you can’t pay bills with a promise.
Invoice factoring allows you to get paid a good portion of your accounts receivable immediately so that you can keep your business in operation.
Invoice Factoring Exchange
Understanding the concept behind invoice factoring can help many small businesses plan on ways to keep their cash flowing while they are awaiting payments. However, you still need to find funding partners willing to purchase your account receivables in order to take advantage of the benefits of invoice factoring.
CBAC Funding is an invoice factoring exchange specializing in providing a marketplace for businesses to submit their invoices. They then have funding partners that can bid on the invoices and help businesses get more working capital.
The key is that this allows businesses to easily access funding partners and improve on their working capital and obtain the funds needed to improve their company. At the same time, investors are aware that they are biding on actual account receivables and feel more secure in being about to recoup their investment.
The biggest benefit is for companies that have their money tied up in their accounts. A business in that situation needs money right away. By operating an accounts receivable exchange, CBAC Funding helps these businesses get the money that they need right away. At the same time, these businesses also benefit by having a third party take over the accounts receivables and taking care of the collections process.
With a vast network of private investors and institutions, even if CBAC Funding can’t provide a business with cash at the rate they want, they can help find a company to fit a business’ needs.
The philosophy behind CBAC Funding is that they want to help businesses succeed. So they specialize in helping businesses by providing a great service to help with funding your new business.