Improving Cash Flow for Dallas Businesses
For many Dallas businesses, cash flow is crucial for long-term success. When there are outstanding receivables and unsettled customer accounts, it can place a big strain on cash flow and could threaten the ability to make payroll, meet financial obligations, and even force businesses to put off plans for growth. Many businesses try to overcome these issues by taking out short-term loans, but there is a better, debt-free method.
Traditional Loans Don’t Correct Cash Flow Issues
For the longest time, traditional loans were used to correct cash flow issues. While loans can act as “band aids” for cash flow issues, they are often recurring problems. Because loans place debt on the balance sheet, Dallas businesses are creating larger liabilities each time a loan is used temporarily smooth over cash flow issues. Eventually, Dallas area businesses need to maintain a healthy cash flow, not just to meet regular overhead expenses and payroll, but to pay off the balances on loans as well. Businesses in Dallas that use debt-based solutions are creating larger problems further down the road that can lead to downsizing and even bankruptcy.
Better Cash Flow for Dallas Businesses
The main cause of cash flow issues for Dallas businesses can be traced to unpaid receivables. Invoices that are issued with staggered payment schedules of 30 days or longer means businesses are waiting for revenue to trickle into their accounts. The economic landscape in Dallas is much faster than it used to be. There is no reason for businesses to wait that long to see revenue from their sales. Accounts receivable financing – or factoring – converts unpaid invoices to cash within 24 hours. This eliminates staggered payment schedules and boosts cash flow so Dallas area businesses can make payroll, meet overhead expenses, and accumulate capital for growth and expansion projects. Additionally, Accounts receivable financing is debt-free. There are no long processing times, no debt, no arbitrary loan board decisions, and businesses preserve their credit ratings. Businesses across all industries can take advantage of the benefits of factoring services if they issue invoices with staggered schedules of 30 days or longer.
At Caedmon Commercial Capital, we provide the most comprehensive accounts receivable financing program for businesses in Dallas, TX. If you want to boost your cash flow, meet overhead costs, and start positioning your business for growth, contact the experts at Caedmon Commercial Capital today.