Benefits of Accounts Receivable Financing
When it comes to getting the cash your business needs to cover your day to day expenses, expand your operation or to cover a large order, there are several options. The benefits of accounts receivable financing is that its quick, it doesn’t require a lengthy application and underwriting process, and is very flexible. There are no repayment obligations, so future cash flows remain intact and you can get your money in days rather than weeks.
Why Financing Receivables Can Help Your Business
Businesses across all industries can benefit from financing receivables. Having the ability to raise fast cash without having to qualify for a loan as well as being able to forego future payments are the main reasons why financing receivable can help your business. However, they aren’t the only ones. Financing receivables allows your business to offload liabilities from their balance sheets and improve the financial position of their companies. This allows them to transition from break even mode to growth mode.
This process allows you to offer payment terms to your customers that may extend past 10 days, but you still get paid immediately. When you factor receivables there is no repayment that needs to be made and no debt is created. Its really a win win situation for you and your customers. Here’s a list to sum up the benefits:
- Fast application and approval process, get cash in under a week
- You can offer extended payment terms to your customers without cash flow taking a hit
- Financing method grows asyour company grows
- No payments and no debt
If your business could benefit from financing receivables, we can help you get on the path to fast financing. Our factoring specialists will determine the lowest rate possible for your company based on your clients and their payment schedule. We can get the capital you need to stay on track today.
Accounts Receivable Factoring Companies – The Missing Piece to Business Growth
Did you know that the accounts receivable aspects of your business can be handled by an accounts receivable factoring company? These are financial corporations that will buy your invoices and provide your company with a fast cash advance, so that you can get back on track and concentrate on generating more business. Accounts receivable factoring companies are also called asset based financiers. Working with an A/R factoring company may be the missing piece to your businesses growth.
When you are owed money by your customers, you can use this quick funding option as a way to keep cash flow up when clients are slow payers or have extended terms.The accounts receivable factoring companies give you cash, so that you can look to new business and not focus on manually processing your invoices of products or services that have already been sold. Accounts receivable processing can take weeks, sometimes even months. Working with the right factoring company will be the missing piece in your company’s future growth.
There are a lot of different variables that can have an effect on the percentage that you receive in your advance. For instance, the age of your accounts receivable, the total net worth of them, your customers’ credit strength, trends in customer payment cycles, and the current climate of your industry. If you are thinking about contacting factoring companies, be sure to weed out the ones who have application or other upfront fees. Universal Funding only gets paid when you get paid, which is why we differ from so many accounts receivable factoring companies out there.