Leverage Your Accounts Receivables for Cash
Having a good flow of working capital can sometimes be challenging for your business especially when you rely on invoicing customers for payment who pay 30, 60 or even 90 days later. This holds up your capital which hampers commitments like paying vendors, buying supplies and managing other daily expenses. That’s where Accounts Receivable Financing can help your business. Find out how receivables can be leveraged for cash.
How It Works
This kind of lending is older than the modern conventional loan. Accounts Receivable Financing, sometimes also known as ‘Factoring’ is the process of a business selling its receivables or invoices to a financing company or a factor at a discounted price. The factor pays the business for the receivables and in turn assumes the right to collect the funds from the company that was originally invoiced. When the factor collects the payment in full, they pay the balance to the business after deducting the advance and factoring fees. This provides your business early access to money you are owed, allowing you to put that money to work for you.
Benefits of Accounts Receivable Financing
- Quick Access to Funds
- No Long Term Additional Debt or Equity Dilution
- Focus on growing your business and not worry about collecting payments
- No Blanket Liens
- Credit Team to Screen your Customers
How We Can Help
If you think Accounts Receivable Financing can help your business, turn to BizCap Commercial Finance, where our associates review the size of your outstanding receivables and your customer’s payment histories. With our proficiency and fine skills to comprehend each unique business situation, we’ll be able to design a loan package customized to your needs.