Renewable energy options such as solar and wind energy are becoming extremely popular, and therefore the demand for contractors and service providers to support the industry are increasing. This has opened up many opportunities for businesses seeking to get involved in the renewable energy sector.
Pros of Working in Renewable Energy
There are persuasive reasons to consider getting involved in this fast-growing field. First and foremost, growth in this industry is expected to continue for the foreseeable future. For economic as well as environmental reasons, the renewable energy industry is a safe bet to grow fast in the coming years. The Energy Information Administration (EIA) predicted that renewable energy will grow by 15 percent in 2020.
Another attractive quality of renewable energy is that it doesn’t depend on scarce resources. In industries such as oil, demand and profit depend on the current price, which is always fluctuating. Energy sources such as solar and wind rely on naturally abundant resources, making them more stable. There’s no need to buy or mine materials, as there is in other fuel industries. With renewable resources, you only need the appropriate technology to harness energy.
Challenges of Working in Renewable Energy
Contractors and service providers to the renewable energy industry often find that they need to wait for their invoices to be paid. In the meantime, they have business expenses to cover. Finding funding for new businesses can be difficult, but you’ll need working capital to cover payroll, purchase equipment and cover any other business expenses.
Financing Your Renewable Energy Business
It can be costly to enter renewable energy and to maintain and upgrade the technology, you may need to consider financing options. Whether you’re an existing company or are planning to start a new business, you need a certain amount of capital. There are several possible sources of funding.
- Your own savings or independent sources of capital
- Loans from friends or family members
- Traditional financing such as a bank loan
- Small business loans from the government
- Invoice factoring for accounts receivable
You may want to use one or more of these options. Let’s now turn our attention to how invoice factoring can be one of your best alternatives to traditional financing or a supplement to it.
The Advantages of Renewable Energy Factoring
Invoice factoring is a type of financing that allows you to collect immediate payments for invoices. Rather than wait for clients to pay their invoices, you collect payment from the factoring company. This is a strategy to help you achieve a more stable cash flow.
Riviera Finance has been providing invoice factoring services to all types of business for more than 50 years. Our non-recourse factoring has several key advantages.
- Obtain financing without taking on new debt
- Flexible financing to provide instant capital on an as-needed basis
- Credit guarantees on all invoices that we factor
- Accounts receivable collection services provided
- Receive up to 95 percent of billed amount within 24 hours
- Better cash flow helps you meet expenses such as payroll, investing in technology and other obligations
Renewable energy factoring can be an effective way to grow your business and boost your cash flow. The only requirement to get started is that you must have B2B invoices.
To learn more about invoice factoring, contact Riviera Finance today. See why more business choose Riviera for their business financing needs.