Commercial financing for small to mid-sized businesses requires innovation. Business owners need to be pragmatic when it comes to growing their businesses. But, additionally 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 enables 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 little to mid-sized company owner can fill this out in about 15 minutes. Once the application form 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 new seller can download the application form to their computer. This Mezzanine financing 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 vendor is ready to find the accounts receivable they would like to post for auction. So long so long as the full total auction amount exceeds $10,000, the vendor can post any commercial invoices they want.
Tip: The simplest 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 snapped up quickly and receive the very 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’ll accept from bidders, the utmost discount fee they’ll pay and how long the auction will last. The seller can decide to perform it from 3-10 days.
5. Sale transaction occurs – You can find two ways this can occur. When the auction closes, the Buyer with the best bid that meets the parameters set by the vendor wins the auction. Another option is that the vendor can set a “Buyout Price “.This resembles 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 – When the sale goes through, the funds are electronically deposited into an take into account the seller. This happens within 24 hours of the auction close.
With cash in hand, possibly in as low as one day, small to mid-sized business owners give themselves an advantage over the competition. They’ve the way to grow their business now instead of waiting for invoice payments in the future in. Commercial financing using their accounts receivable allows them to tap into funds that normally take 30-90 days in the future 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 instead 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.