Does your established company need fast money to meet its
obligations or a reliable, debt-free source of working capital
financing? Are you looking for a way to finance growth?
With accounts receivable financing, you will have all of this — and more — making it the best of all worlds in business financing. You get:
For a business owner in need of quick money, a stack of open
can mean lost opportunity ... or worse.
On the one hand, granting terms allows you to attract customers. Many companies, larger ones in particular, and government agencies expect extended payment terms and will refrain from doing business with companies that do not offer them. If your company is not currently offering terms to its customers, then accounts receivable financing can be the vehicle to more business. Not only will new customers be enticed to do business with you, but with favorable terms, your current ones will likely buy more.
On the other, while you wait for the payment to arrive, the money owed your company is not available to the business to pay for labor, materials, and overhead. This fact alone precludes many businesses from offering terms, while creating serious — sometimes ruinous — financial difficulties for others.
Accounts receivable financing allows you to convert your invoices to immediate cash. By using one or more of the methods described below, extending terms to your current and prospective customers will no longer be a consideration.
think about factoring
until you've read this ...
It could save you many thousands of dollars and a lot of aggravation!
Since business factoring is the sale of invoices to a factor, it is never a loan. Therefore, even if your personal and business credit ratings are not good, receivables factoring is an attractive business financing option available to you.
Discover The Power of Accounts Receivable Factoring!
Looking for an industry-specific factoring program? Click on any of the following to see how factoring can work for you:
Floating Lien Financing ... Like accounts financing, a floating lien arrangement is structured as a loan. However, rather than giving the client company a business line of credit with the ability to take daily advances, the floating lien arrangement will typically allow for advances on a more limited basis (monthly, for example).
Off-Balance Sheet Financing ... Generally available only to large, well-established firms with excellent business credit ratings, off-balance sheet financing is similar in form to receivables factoring, since the accounts receivable are sold to a cash flow business. The main distinction from business factoring is how payment of the client receivables is managed. When factoring invoices, the client's customer pays the factor, but with an off-balance sheet facility, the client collects the payment and forwards it to the cash flow business that has purchased the invoice.
While accounts receivable financing offers tremendous benefits to business owners and executives, it will not work for every type of business. Companies that sell products and services exclusively to consumers or businesses who pay in full with cash or credit cards will not ordinarily be able to use any of the above methods.
For most retail stores, restaurants, online auction businesses, and the like, offering payment terms is neither practical nor desirable; however credit card factoring is an option to accelerate cash flow and provide some working capital financing.
Many types of retail companies can benefit immensely by offering terms to their customers. If you think installment sales are beyond your reach, read installment contract financing to discover how easy it can be.
Find out how accounts receivable financing can help your company prosper today!
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