When your business needs an influx of cash quickly, waiting for a bank loan to come through is not usually a realistic option. The traditional lending process can take longer than you can wait to access funds for your business needs. Accounts receivable financing is an excellent alternative to the conventional business loan. Instead of approaching a lender, completing an application, and waiting for approval, your company can quickly get payment for your invoices before they are due. A/R financing gets you money in a fraction of the time it would take to access cash from traditional lenders.
Accounts Receivable Financing and Traditional Bank Loans
Conventional lending options involve a lengthy process before you learn whether or not you are approved. The application process for business loans can take weeks, and it may be much longer before you learn the lender’s decision. There often is another waiting period before you receive your cash, and you will have to start the process over with another bank if you are not approved.
Financing receivables is a very different path to accessing cash. You sell your open invoices for a lump sum instead of going through a loan process.
- The application and approval process is much quicker, as the finance company is only concerned with your invoices.
- Your credit standing is not a significant part of the approval process since the finance company is interested in your customers’ ability to pay their invoices.
- You access payment for your invoices quickly after approval.
- There are no interest charges or need to schedule future monthly payments since this is simply a sale of your open invoices.
Selling your invoices is a less complicated than accessing cash through a bank loan. The process is quicker, and there is no need to budget repayment or interest fees.
Access Cash Without a Bank Loan
Accounts receivable financing is an excellent alternative to conventional lending avenues. To get cash for your open invoices, give Universal Funding a call today at (800) 405-6035 or fill out our online rate form to request a free consultation.