Unlock the Power of Cash Flow with Invoice Financing

As a business owner, you know that waiting for customer payments to roll in can often feel like playing a never-ending waiting game. You have outstanding invoices, and while you're confident that the money will eventually come, you need that cash now to keep your operations running smoothly.

That's where OMB Bank's Invoice Financing Program steps in to revolutionize your cash flow and take your business to new heights.

What is Invoice Financing?

Invoice financing is a financial solution that allows businesses to access immediate cash advances on their outstanding customer invoices. These invoices serve as collateral, giving you the leverage to secure a loan or credit line. Rather than waiting and hoping your customers will pay in full and on time, you can take control of your cash flow and get access to much-needed funds sooner.

How does OMB’s Invoice Financing Program work?

OMB has streamlined the invoice financing process to ensure a seamless and efficient experience for your business. Here's how it works:

1. Submit Your Invoices: The first step is simple—provide OMB with your outstanding invoices for analysis.
2. Quick Approval: No more waiting around for weeks to know if you qualify. OMB’s expert banking team will promptly review your application and make a financing decision.
3. Receive Funds: Once approved, the cash advances will start flowing into your account based on your eligible invoices. Say goodbye to cash flow bottlenecks!
4. Customer Payments: While you enjoy the funds, your customers pay their invoices directly to OMB.
5. Access Remaining Funds: As your customers pay their invoices, you'll receive the remaining funds minus a small fee. You still retain ownership of the unpaid invoices and are responsible for collecting payments.

The Perks of Choosing Invoice Financing

1. Access Funds Sooner: Don't let sluggish cash flow hold you back. With OMB’s Invoice Financing Program, you get the capital you need precisely when you need it, ensuring you can cover expenses, seize opportunities and handle emergencies without delay.
2. Increase Working Capital: Every business needs a healthy working capital to thrive. Invoice financing ensures you have the necessary funds to support your day-to-day operations and invest in growth initiatives.
3. Gain a Competitive Advantage: In the fast-paced business world, being agile is crucial. By optimizing your cash flow through invoice financing, you'll be better positioned to take advantage of new ventures and outshine your competitors.
4. Ideal for Business-to-Business Companies: If you operate in the B2B realm, invoice financing is tailor-made for you. Ignore cash flow headaches caused by unpaid invoices—OMB’s Invoice Financing Program is specifically designed to alleviate these issues.
5. Invoices as Collateral: Qualifying for business credit can be tough, but with invoice financing, your invoices act as collateral, making the process more straightforward and accessible.

Considerations to Keep in Mind

As with any financial solution, there are several aspects to consider including:

1. Reliance on Customer Payments: The cost of financing is often linked to how long it takes your customers to pay their invoices. Anticipating the total cost can be challenging and there may be additional fees for late payments.
2. Potential Fees: While the fees on invoice financing may seem competitive, it's essential to factor in the rates when calculated as an annual percentage rate, or APR.

What Types of Businesses Benefit Most From Invoice Financing?

Businesses that rely on regular monthly invoicing as a source of revenue can benefit the most from invoice financing. If you’re a procurement-heavy company with invoices coming in and out of your accounts regularly, this type of financing can help your company when cash flow is tighter than you would like. Invoice financing is a relevant tool when traditional means of business credit, like a business loan, are already in use.

Invoice financing is made for B2B companies that typically have 30-, 60-, or 90-day billing cycles for customers. It depends on how you do business. But as long as you have regular invoices and receipts, invoice financing can be a valuable tool that doesn’t require the complicated approval processes usually found with traditional business loans.

What Can the Proceeds From Invoice Financing Be Used For?

In general, you can use the proceeds from invoice financing however you wish unless the lender places stipulations on the cash flow.

We’ve seen some of our commercial clients use invoice financing to:

• Hire extra help, either temporary or full-time.

• Pay suppliers or vendors for raw materials or supplies.

• Reinvest in operations to help with long-term growth.

• Buy more equipment.

• Pay overhead.

Invoice financing gives you the financial freedom to make decisions when you need more cash flow in a pinch.

Cash Flow Made Better

Invoice Financing can be a game-changer for your business. Fuel your business's growth, enjoy a predictable cash flow and get faster access to funds from your receivables.

At OMB, we understand that every business is unique, which is why our experienced commercial team offers personalized solutions tailored to your specific needs. Plus, you'll enjoy competitive pricing structures and transparent fee schedules.

Our Invoice Financing Program is suitable for businesses across various industries including energy, manufacturing, trucking, transportation, staffing, medical, wholesale, distribution and business services. If you have outstanding invoices, we have the financial solutions to help accelerate your growth.

Don't let cash flow constraints hold you back—unlock the power of your business with OMB’s Invoice Financing Program and take control of your financial future now.

To get started, reach out to us here.

OMB Bank and its affiliates do not provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decision.