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Working capital solutions based on accelerating the payment cycle

Working capital solutions that are based on accelerating the payment cycle can provide businesses with a way to access the cash they need to fund their operations and invest in growth opportunities. These solutions typically involve selling a company's accounts receivable to a third party, such as a factoring company, in order to raise cash in advance of when the customer would normally pay.

 

Key advantages of working capital solutions

One of the key advantages of working capital solutions that accelerate the payment cycle is that they can provide businesses with access to cash on a more timely and flexible basis than traditional forms of financing, such as loans or lines of credit. For example, if a company has a customer who typically pays their invoices within 30 days, a factoring company might be able to advance the company the majority of the invoice amount within a few days, allowing the company to access the cash they need much sooner.

 

In addition, these solutions can be particularly beneficial for businesses that may not have the credit history or collateral to qualify for traditional forms of financing. Because the financing is based on the creditworthiness of the company's customers, rather than the company itself, it can provide an alternative source of financing for businesses that may not be able to access other forms of financing.

 

Overall, working capital solutions that accelerate the payment cycle can provide businesses with a convenient and flexible way to access the cash they need to support their operations and invest in growth opportunities.

 

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