One of the most important battles a small business has to face is raising capital. Sometimes you need to raise capital quickly in order to grow a business, but it’s not like every financing option is always the best one. Sometimes banks don’t go out of their way to extend the capital that you would normally expect, and this can leave businesses struggling to meet both short term as well as long term goals. The best thing that can be done here is to simply look into services that financial firms like Touch Financial provide.
Simply put, Touch Financial gives you the power to raise capital fast. Their programs allow small businesses to submit their invoices as a sign of what’s coming into the business as hard money, and then they will in turn release the cash to businesses when they need it most. A modest percentage is set aside to handle miscellaneous fees. Touch Financial tries to set aside the smallest amount of money possible from the pool of invoices, giving companies more capital without heavy interest rates. If you’re only used to what the traditional banks do in terms of extending credit, then you really owe it to yourself to see what Touch Financial has to offer.
For the technical out there, the service that the company uses most to help small business owners is referred to as factoring. The service isn’t a new process, but one that has been used in business circles for hundreds of years now.
There are two different ways that Touch Financial assists their customers. While factoring is at the heart of both paths, the methods used in the factoring process are a bit different. Traditionally speaking, factoring is done where the lender — in this case, Touch Financial — is actually the one collecting invoices from customers. However, some business owners have requested that they have the freedom to collect their own invoices. Collections is a big business, and it’s one where simple mistakes can jeopardize the ability to get payments. However, one has to make very sure that they have a solid collections process already in place. When it comes to invoices, sometimes getting the money owed for services rendered can be a challenge.
Before you look into the services provided by Touch Financial, you will need to make sure that you have a solid procedure for processing invoices of all amounts and sizes.