How can small and mid-sized businesses get quick working capital financing and control the process at the same time? There is an innovative form of invoice financing that gives these businesses access to cash that is sitting on their books in the form of accounts receivable. Here’s how fast and efficient working capital financing occurs using this innovative online receivables marketplace:

Post Invoice(s)- The seller chooses which outstanding invoices they want to sell. When they post them to the online auction platform, they set the parameters for the auction. The seller gets to maintain complete control of their funding because they decide which invoices, how many, the minimum advance amount they want and the maximum discount fee they are willing to pay.

The seller also determines the length of the auction, which can range from 3 to 10 days. In addition, the seller can set a “Buyout Price”, which if selected by a Buyer closes the auction immediately. This gives the seller cash even faster than anticipated. This can be a huge advantage to the seller considering they receive the cash the very next day after auction close.

Bidding Begins- As soon as the invoice is posted, buyers (Accredited Institutional Investors from around the world can bid on ones that meet their investment criteria. Through a desktop application downloaded to their computers, buyers can bid in real-time and sellers can watch the competitive action live from their desktop 24/7.

Auction Closes- The auction ends at the time designated by the seller or when the “Buyout Price” is selected - as mentioned above. At this time, the highest bidder that meets the terms set by the seller wins the auction. The “Buyout Price” is very similar to the “buy it now” option on eBbay. If, for some reason there is no winning bid, the seller is not required to sell.

Electronic Funds Transfer- All transactions, funds transfers and remittances are managed by the auction marketplace with straight-through processing. When an auction closes, the seller will receive the advance amount the very next day.

Another benefit to selling your outstanding invoices on this online marketplace is privacy. Your customers are never notified of your participation or that receivables were sold. Also, the buyer’s identity is kept private as well. The seller receives their cash quickly and efficiently, but doesn’t know the buyer(s) who purchased it..

Grow Business- Working capital financing using this flexible and fast online solution inspires small and mid-sized businesses to take calculated risks to grow their business. Fast access to working capital gives them the freedom to grow their business as they see fit knowing they have a reliable working capital source when they need it.

Whether it is a new piece of equipment or a down-payment on a second warehouse, taking advantages of opportunities takes cash. Reinvesting that working capital back in your business can ultimately lead to even more success.

Small and mid-sized businesses have been limited in their business financing options in the past. With this innovative alternative they now have the ability to gain flexibility, control and quick access to much-needed cash.

It is up to them to become aware of what’s out there and then choose the best option that meets their financing needs. When cash flow is needed fast with flexibility and security, selling accounts receivable through auction is a win-win situation for everyone.

With account factoring, working capital financing is no longer a concern for small businesses as now they can auction their receivables at online marketplace and get cash against the same to meet their working capital needs. To know more, visit http://www.receivablesxchange.com.