Why Accounts Receivables Financing can be Better than a Bank Loan

Many often feel as though non-traditional commercial financing options are only for those companies that have been turned down for a traditional bank loan. Yet, for many other companies, going the non-traditional route through a product such as accounts receivable financing may be the better financing method even if the option for a bank loan is still on the table.

A closer look at the unique advantages that receivables financing has to offer reveals many aspects that could potentially make such an option more attractive than conventional financing means. These benefits include:
• Fast turnaround times: A traditional loan can take up to 30 days for a lender to process; as credit profiles are checked, collateral is arranged, and payment schedules are set up. When you choose to finance your receivables, you can often have your approval processed in as little as 72 hours.

• Collateral: With a bank loan you’re required to put up a tangible business asset as collateral, in the case of financing your receivables, your invoices themselves are collateral.

• Client relationships: Financing receivables allows you to continue to build solid relationships with your clients by offering them credit terms while benefiting from the monetary value of those invoices in the short-term.

• Financial flexibility: Obtaining your financing through non-traditional means, allows you to get the working capital you need, without impacting your credit profile and/or tying up other valuable business assets. Should you need access to those tools in the future, they’re still available to be called upon.

While unconventional, financing your company’s growth through accounts receivables financing offers you a number of distinct advantages. If you’re interested in financing your company’s receivables, just give us a call at 1-800-405-6035 today.

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