When your business needs an influx of cash, your first approach is often to examine your open invoices. This helps identify customers who are past due, and ones who will be paying in the immediate future. If you need capital before those invoices are due, waiting for business loan approval is not likely to be an option. Selling open invoices is a faster funding solution than traditional lending avenues, providing your business with capital more quickly than waiting for invoice payments or bank approval. Financing receivables also allows you to access cash when you do not want to incur debt.
Time Tables for Accessing Cash
A business loan can take weeks or months, while the entire process of financing your receivables can take only days.
A conventional loan requires:
- In-depth examination into your credit standing, company history and cash flow
- Possible waiting period of several weeks or more for approval, and a further wait to receive the funds
- Months or years of budgeting for monthly repayment of the loan
- Months or years of debt on your balance sheet
Receivables financing requires:
- Quick assessment of your business, customers, and invoices
- As little as two days for approval, with cash available the same day your invoices are received
- No budgeting for monthly repayment since the transaction is simply a payment for your invoices
- No debt on your balance sheet since receivables financing is the sale of your assets, not a debt
Selling your invoices is considerably faster and avoids restricting your cash flow for months or years while you make payments to the bank each month.
Find Funding Without the Wait Through Receivables Financing
When your company needs an influx of cash before your customer payments are due, waiting for bank loan approval is not an ideal option. You can reduce the waiting period to access capital by as much as weeks or months with receivables financing. Fill out a rate form to get your rate proposal and the application started.