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Money makes the world go round. When small to mid-sized businesses are lacking working capital, they get left behind. Credit can be hard to come by in the world of small business so what are the alternatives? An owner can add up his invoices that are still out for payment and watch the money trickle in over the next several months. What he needs is cash right now and those pieces of paper aren’t doing anything for him. But... they can. In a win-win opportunity for these small to mid-sized companies, accounts receivable factoring and alternative invoice financing option are the future. An online auction site offers a neutral ground to put businesses and investors in contact with each other. The transactions are convenient and completely secure and private. Business owners have 24 hour access and can watch live bidding on the invoices. With the criteria that the receivables seller enters and the criteria that the receivables buyer enters, accounts that meet both of their needs are pulled for the perusal of the buyer. Sellers (small to mid-sized business) get access to working capital when it is needed and not when the invoice is paid by the account debtor. This allows Sellers to take advantage of unexpected opportunities or handle unexpected problems. Similar to accounts receivable factoring, invoice financing through this online marketplace gives the small business owner control over the future of the company instead of remaining a slave to outstanding invoices and monthly bank loan payments. This is not a loan process, but an opportunity for businesses to get quick access to cash when they need it by selling outstanding invoices for a predetermined discount fee. The Seller has a very hot commodity that the Buyer wants. In an uncertain stock market where housing and retail are suffering and the value of the dollar is not where it should be, hedge funds, investment firms and other financial entities are seeking innovative ways to diversify their portfolios and decrease their risk. Processes like accounts receivable factoring or the Seller-friendly invoice financing are opportunities for them to do just that. This makes invoice financing an attractive investment for the Buyer. Because of this, there is no shortage of Buyers who will be bidding on the invoices listed which means a competitive cost capital for the Seller. The Buyer has the freedom to choose what invoices to bid on, granted it meets their criteria. However, the Seller remains in control by setting the maximum fee and minimum advance amounts. Once the transaction is made, the advance is made instantly to the Seller. The online auction site manages the payments made between the Seller and Buyer. Once the payment is made on the invoice along with the amount to cover the fees, the transaction is complete. If there are any funds left, the Seller receives them. If the debtor defaults on the payment, the Seller is required to buy back the invoice. So, invoice financing offers more benefits to the Seller than accounts receivable factoring, but it is beneficial to all involved. If the money will come in eventually, why not get it when it is needed. Accessing working capital through this process can be the difference between a successful small business and a missed opportunity. With account receivable factoring you can now turn your receivables into cash quickly and easily without much hassles. To know more, visit http://www.receivablesxchange.com/opencms/opencms/index.html
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