.png)
When you're applying for invoice financing, you must have done a thorough research and come to the conclusion that factoring is the best option for your business at that particular time. Before you submit your invoice financing application, you should know how to increase your chances of approval.
When you submit your application, you should include a summary about your business that should comprise of;
•a background of the owner of that business,
•a brief company history,
•your target market,
•clients,
•the business' current and expected revenues.
Things you can do to Improve your Invoice financing Application.
Increase your company's credibility: An invoice financing company places great focus on the creditworthiness of your customers to decide if you're a good candidate for financing. It also has to thoroughly verify your company's credibility.
One way to increase your company's credibility is to have a good online presence. Having an online presence with social media profiles and a website shows that you're running a legitimate business when the invoice financing company carries out its investigation.
So, it is always advisable to create a business website and have active social media profiles on social media sites such as Facebook, LinkedIn, etc because this increases your chances of getting your application approved by an invoice financing company.
Maintain organized records: If you cannot keep track of your account receivables, monthly income and expenses of your business, an invoice financing company cannot also do that for you. Keeping your documents well organized does not only increase your chances of getting your financing application approved, but also helps to run your business smoothly.
Keep good and organized records of your purchase orders, customer contracts, invoices and every other important detail to fasten the invoice financing process.
Keep all important documents catalogued in a filing cabinet and this should have a working system for easy access when needed, or you can make use of an online accounting software. When you prepare an invoice, generate an invoice numbering system to keep track of all customer invoices and to tell each one apart.
Good record keeping is of utmost importance so that when you submit an invoice for financing, all of the information entailed are up to date and accurate. If you struggle with record keeping, you should consider hiring a bookkeeper. Keeping your documents in order not only increases your chances of getting approval for financing, but it also helps in the smooth running of your business to avoid your business suffering in the long run.
Show that you're a profitable candidate: You should submit an invoice from your largest, most creditworthy and reliable customer with your invoice financing application. A stable business with a good reputation is more likely to pay its invoices on time, which makes the deal more desirable for the invoice financing company to consider.
Choosing the best invoice possible to submit with your application will go a long way in persuading the invoice financing company to accept your application and establish a good long-term relationship for possible future transactions.
It is also very important for you to make sure that you and your customer are on the same page before you submit your application. Submitting an invoice when you and your customer don't see eye to eye can negatively affect your business, and ruin your chances of getting an approval from the financing company and having future deals with them because this will only have a negative impact on your business' credibility.
Keeping your business and account payables in good light is the best way to improve your invoice financing application, and also maintain a good reputation that will make people want to work with you.
Get all your affairs in order, put together your application, submit to Bridger today and get your invoices financed.