Accounts Receivable Financing Can Prevent Bank Overdrafts for SMEs

Banks remain reluctant to lend to small and medium businesses, requiring companies to seek out alternative sources of funding to provide working capital.

In the past year smaller companies requiring fewer than $20 thousand dollars per month, have been able to find financial relief via new online lending platforms like OnDeck and Kabbage. But for larger companies needing to finance $50 thousand or even $1million dollars each month, where are they to turn while waiting on slow paying customers? These online lending platforms deem them too big and banks still deem them too small.

Our alternatives to traditional bank lending is accounts receivable financing, a source of capital that enables companies to expand and grow without having turn down new business because the cash flow isn’t there to support a new project.

Accounts receivable financing frees up locked in capital that will be paid in time according to the net terms you have arranged with your customers. Instead of waiting out the 15, 30, or 60 day terms, you can access the funds immediately which allows you to concentrate your efforts on new business and avoid overdrafts.

In the last ten years there has been a shift in the way companies access capital and many that have settled on using overdraft protection and fees can now turn to Universal Funding, which can come up with cash much more quickly than a bank. Universal Funding is one of the most experienced sources in this business finance space, providing their services throughout the United States for almost 20 years.

Accounts receivable financing gives companies the flexibility to quickly access the cash tied up in their invoices. If you’re ready to experience the financial support you need to keep your business growth plans on track, fill out a rate request or call 1-800-405-6035 today.