Financing of purchases in micro-enterprises
Financing purchases in micro-enterprises, i.e. how to pay one's own liabilities in a timely manner, regardless of the circumstances
Financing your purchases - don't wait for payment
There are solutions on the market which can, to a large extent, make life easier for micro-entrepreneurs. One of them is the financing of purchases. It is a variant of factoring, the so-called reverse factoring - it can also be considered as a way of debt management. How does purchasing finance work? An entrepreneur who waits for money from his contractors, and thus does not have the means to pay his own liabilities and loses financial liquidity or cannot pay for purchases necessary for the functioning of his own company, may apply to the company offering such a service. This - after positive verification - settles the entrepreneur's obligations and transfers the money to the account of its creditors and companies from which it purchased goods or services before the payment date. The time to settle the liability towards the factor is 60 days, so the entrepreneur has so much additional time to pay off the factor.
Effective management of commitments, i.e. the benefits of financing purchases
Purchase financing is a solution that brings a number of benefits to the enterprise. It can be compared to a trade credit, but it requires much less paperwork. From the point of view of business partners, the use of purchase financing makes their own company credible, because the payment for the invoice is made almost immediately. This also allows you to negotiate a more advantageous price. It is also a simple way to pay companies that expect immediate payment or have a very short payback period. It is also worth remembering that financing purchases enables faster development of the company - thanks to effective management of liabilities, greater flexibility and the certainty that financial liquidity will not be lost.
Funds for the company - don't wait for unreliable contractors, settle your own liabilities right away
Purchase financing service is a possibility which allows to eliminate such phenomena as late payments or lack of financial liquidity to a large extent. These do not have to be the result of bad will or unreliable business activity. This is much more often due to the long waiting time for payment for own invoices, as well as delays in payment by contractors. This phenomenon is particularly burdensome for micro-entrepreneurs. Long waiting for payment or overdue payment of even a few invoices can be a big problem, hamper current operations and hamper the development of the company. The purchase financing service not only significantly reduces these problems, but also allows to increase the credibility of one's own company and to negotiate more favourable terms of cooperation.