Financing your invoices might wind up being your best method of managing cash flow, but you can never know for sure until you try it. Many businesses find the combination benefits of accounts receivable financing to be the best deal available, especially when considering how fast approvals can come. For first-time applicants, it’s easy to close a deal in a week or less. Regular customers get approvals even faster.
Your Initial Application
The biggest concerns that financing companies have when making invoice cash advances are always the customer’s payment history and the value of the invoices. First-round applications often forego some identifying information about the applicant until the basic financial facts of the deal are reviewed. That means it is no surprise to find an initial application asking for basic information and financial disclosures. Sometimes, the address and tax ID are all a lender asks for. By the end of the process most ask for the same thing, though.
Initial Approvals and Information Requests
Within a day or two, the financing company will reach out with news about your application. The approval you might receive at this point is tentative, and typically comes with requests for information and verifications. Some lenders want additional financial information, others ask for proof of your general liability coverage or your business license. The requests are aimed at simply confirming the deal is what it looks like, so the more often you use one firm for accounts receivable financing, the less you typically need to send in the second round.
Second Submission and Negotiations
Since the initial approval was tentative, you have some room for negotiations before the deal closes. The important thing to remember is that requesting changes from a standard deal takes time since your point of contact needs to run it up a chain of command to clear the request. Often, financing companies have a few options to choose from at this point, just to confirm your preferences with pre-cleared additions to the original offer. The faster you submit the requests for additional information and finish negotiations, the faster you can close the deal.
Closing an Agreement and Receiving Your Capital
The money transfer at the end of the deal is quite fast. It is initiated within 24 hours of agreements being finalized, and the time until it is available to you depends on your own bank’s external transfer policies and processing speed. If you respond quickly to information requests, you can easily close a deal in just a few days.