MENTORS Magazine

MENTORS MAGAZINE | EDITION 1 | 23

are a key component of accounts receivable.

We also mentioned how you can rely on

these invoices as a form of collateral in se-

curing additional working capital. This is

where invoice financing and invoice factor-

ing can come in handy.

While net-terms can be convenient for large

businesses looking to manage their working

capital, they can quickly become unfair to

the small and medium-sized businesses rely-

ing on these payments to keep their busi-

nesses afloat.

Invoice financing provides a much-needed

lifeline for SMBs looking to get a firm grasp

on their working capital management and

allow for the cash flow they need to keep

debt obligations paid and everything else

running smoothly.

Alternative lending is gaining traction among

small businesses thanks to its more relaxed

qualifications, convenience, and fast access

to a capital. When SMBs can have up to

100% of their outstanding invoices advanced

to them in as little as 24 hours, it’s not hard

to see why. As long as a business has docu-

mented, outstanding invoices, it can reach

out through online invoice financing to se-

cure the working capital it needs to continue

to operate at a high standard.

It’s hard to talk about working capital man-

agement without having the cash flow to

manage in the first place. Thanks to alterna-

tive lending services like online invoice fi-

nancing, businesses are no longer held hos-

tage by one-side net payment terms that on-

ly serve to benefit large companies.

Through access to more working capital on a

faster timeline thanks to invoice financing

and invoice factoring, SMBs are able to pro-

actively manage this capital to further grow

their business. Rather than wait for months

on end to be paid for services rendered or

goods you’ve already produced, a business

can receive the money its owed on time and

focus on running their business, rather than

tracking down customers for payment.

Steven Uster is the Co-Founder & CEO of FundThrough, an invoice funding service that helps business owners
eliminate "the wait" associated with payment terms by giving them the power and flexibility to get their in-
voices paid when they want, with one click, and in as little as 24 hours.
Prior to FundThrough, Steven was an investment banker in New York at UBS and
Centerview Partners. Steven has an MBA from The Wharton School and a Bachelor
of Commerce with Honours from McGill University, where he was a Loran Scholar.
Instagram: @FundThrough_
Twitter: @FundThrough
Facebook: @fundthrough