Accounts Receivable Financing

If you have no working capital to sustain your business, you can get immediate funds from a reputed invoice factoring company. With the cash, you can resolve the difficult financial situation without incurring any liability.

If your business is in a cash-strapped situation, account receivable financing can provide instant working capital to your business. With this fund, you can meet the ongoing operational expenses that your business has to incur.

Small businesses have long been fulfilling their financial requirements by taking out loans from banks. The economic slowdown, weak profit margins, poor cash to debt ratio, and stringent federal regulations are forcing forced banks to reject most of the loan applications. Here, accounts receivable financing can provide instant working capital to the companies to solve cash flow issues.

Small businesses that experience financial difficulties can find a quick way of getting cash for ongoing working capital solution. A reputed factoring company can provide with instant cash as an advance up to 90% of the invoice value.

Your business is too precious to suffer just because its cash reserve has dried up. You couldn’t get a bank loan, and need to act immediately since your ongoing operational expenses need to be met. In this scenario, you can rely on an accounts receivable factoring company to overcome the cash crunch and take up new orders to generate more revenues.

Accounts receivable financing is an effective way to boost your cash reserve without increasing your debt. Factoring your invoices or selling them to a factoring company can get you immediate cash flow. You need not worry about late payments from your customers.

Through invoice discounting, you can easily get funds ranging between $10,000 and $500,000 in 4 days. An advance amount of up to 90% on an invoice is paid by the factoring company. In addition to that, there are no set up fees or penalties, except a discount fee (usually between 2.5% and 7.0%).

These days banks are hesitant to offer loans to small businesses. Some banks are even pulling the plug on their business client's line of credit. If this situation goes on, the supply of new business will terminate and a company's steady growth and retained earnings will be weakened severely. If you are feeling similar financial turmoil, then wait no longer and opt for accounts receivable factoring.

Trying for a loan isn’t always feasible. Some of the banks do not approve applications due to strict lending regulations. Even in this dismal scenario, you can get required cash quickly through a flexible financing option known as accounts receivable financing.

Purchase order financing agreement is a practical funding option that may help you grow your business by efficiently fulfilling larger orders. For the required working capital issue, the POs can be used immediately. You will never have to face the risk of losing a big merchandise order.

The process of spot factoring deals in a single invoice. Basically it’s about financing a single invoice instead of multiple invoices. Once a company sells an invoice at a discounted rate, it receives an advance amount from the factoring company. The factoring service provider will later collect the full invoice amount from the customer on the collection date.

Accounts Receivable Financing is a great option for business owners to improve cash flow by financing their invoices less a discount fee. You can receive cash in advance of up to 90% of the invoice value that is due from your customers. With this fund you can meet your business’ operational overheads.

Small businesses often receive orders in bulk from reputed customers, but don’t have the required cash to fulfill it. That’s where a purchase order financing company comes into play in terms of paying their suppliers.

Start-up businesses usually sell products or services on credit terms to develop a large customer base. Even the businesses which are reasonably established in an industry provide extended credit terms to their customers to maintain ongoing business relations. Though in the interim, they need additional working capital to pay employees' salaries or for buying equipment or to meet some other business expenses.