And now a break to talk about a sponsor…
I want to tell you about CBAC, because I recently talked to their founder and was pretty intrigued.
CBAC is an invoice financing exchange that provides working capital to small and medium businesses. Here’s how it works:
You’re a business that needs immediate cash. You have invoices out for services or goods that you’ve provided, but it can take two months or more — sometimes much more — to get those invoices paid and receive the cash. Meanwhile, you want to pay employees, pay your own bills, or expand — but you’re sitting around waiting for your clients to pay you. Rather than having to wait month after month, CBAC lets you cash in on the cheap cost of money in today’s market. They’ll take your outstanding invoices and provide you with the up-front cash you’re owed.
Businesses just complete a short application and then can upload their unpaid invoices. CBAC’s financing partners will then compete against each other to provide the business with the best pricing for their accounts receivables — so if CBAC themselves can’t provide you with the money you need at the rate you want, they’ll find a company that can. Businesses have the chance to review bids before accepting any, and can negotiate terms directly with the invoice buyer, creating immediate working capital.
This system — called invoice factoring — is a way for small and medium companies to stay in business or expand without being thwarted while you wait for clients to pay their bills.
If you own or operate a small or medium business, check out whether CBAC might be right for you. A good place to start with is the invoice factoring calculator, which will help you figure out both the cost of factoring and the growth you can achieve utilizing a factoring line of credit.
Disclosure: This post was sponsored by CBAC. All thoughts and opinions are my own.