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Small to medium-sized businesses are always looking for creative ways to raise capital and improve their cash flow with as little cost and few risks as possible. Using an online auction site, these businesses can sell accounts receivable to improve cash flow so they can grow. Here's how it happens: Qualifications 1. Business must meet the minimum criteria to sell accounts receivable on the auction site. 2. Businesses must have at least two years of operational history. 3. Though the invoices are open to international Buyers, the business must be registered to operate in the United States. 4. The business must have a minimum of $1.5 million in annual sales. Application 1. Complete out the online application. This should only take about 15 minutes. 2. Gather and submit the required financial information such as bank statements and tax returns for the last two years. 3. The auction site approves the business to sell on the site by verifying the financial records and other submitted documents. It is not necessary to have a long storied credit history for approval to sell accounts receivable. This process may take up to two weeks for approval. 4. Once approved, a small one-time membership fee is paid for the privilege of using this Seller-friendly venue for raising capital. Listing 1. The business chooses which outstanding invoices to list. Typically, business can get a better cost of capital by listing invoices from large account debtors with good credit and by building a strong auction history. 2. Once the invoices are chosen, the Seller sets the parameters for the auction-the minimum advance amount, the maximum fee amount, the length of the auction and a Buy Out price that is similar to eBay's Buy-It now feature. 3. There is a small posting fee for listing an invoice. Selling 1. Qualified Buyers can bid on the invoices that meet their interest and criteria. 2. The winning bid is the highest bid that meets the Seller's terms. 3. The Buyer pays the advance amount, which is electronically deposited by the auction site into the Seller's account, minus any fees. The auction site manages all of the payments between the Buyers, Sellers and Account Debtors through an electronic clearinghouse. Small to mid-sized businesses who decide to sell accounts receivable have a better chance of growing and succeeding because they have a flexible cash flow tool to work with. While the business takes an IOU in the form of an invoice for goods and services, unexpected opportunities won't. In order to make the most of a situation, cash is needed. Money makes the world go round and trillions of dollars are sidelined in the form of accounts receivable instead of working capital. Small to mid-sized businesses who don't tap into this fount of money will miss out on opportunity to improve their success and growth. With sell accounts receivable, increase your Return on Equity and enhance your liquidity position and key financial metrics. To know more, visit http://www.receivablesxchange.com/opencms/opencms/index.html
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