Boston, MA solar installers are Experiencing a rise in demand from customers in the city proper, as well as surrounding areas. Both business and residential customers are making the switch to solar energy as a means of “going green” and offsetting the cost of utility expenses. However, increased demand for installations requires capital, and staggered payment schedules from open invoices can create a strain on cash flow. Instead of turning to traditional loans as a source of working capital, Boston solar companies are using AR financing to create a reliable and renewable source of funding to fill orders for client accounts of all sizes.
Meeting Financial Obligations & Tapping New Markets
Cash flow is a priority for every business, but especially for the solar industry, which is growing at a very rapid pace. Yet even in the new economy, certain business practices remain, such as issuing invoices with staggered payment schedules of 30 days or more. As Boston area solar installers wait on payments from customers, there are still overhead expenses, such as materials and labor, which must be paid. Staggered revenue streams can place a strain on cash flow and threaten to turn finances upside-down. Additionally, waiting 30 days or longer to receive payments on unsettled customer accounts can force solar installers to put plans for growth on hold until there is enough capital on hand to take advantage of such opportunities.
Loans Are Finite
Traditional loans offer a finite source of capital and place debt on the books. While loans may temporarily correct cash flow issues, they do not guarantee against those problems from cropping up in the future. The debt acquired from loans can also prevent solar installers from branching out into new markets in the greater Boston area. Having to portion a part of your revenue to repay the balance of a loan, regardless of sales cycles, can create an even greater strain on finances.
AR Financing for Boston Solar Installers
AR financing offers a more efficient alternative to debt-based loans. AR financing allows solar installers in Boston, MA to leverage unsettled customer accounts for immediate funding without any of the debt or bureaucracy of traditional lenders. As invoices are created, Boston solar installers can submit them for AR financing. Instead of waiting 30 days, the window is reduced to as little as 24 hours, giving solar companies immediate access to funds to maintain and grow operations.
Learn More About Solar Financing
Durham Commercial Capital offers AR financing and other solutions for solar installers in Boston, MA. From working capital to equipment and even growth financing, we service the solar industry throughout the Boston area. Contact our offices today to increase your cash flow and get a stronger foothold in a growing and competitive marketplace.