Whether you are a new company just starting up or a mature company who wants to expand, you likely understand that both of these things require a substantial amount of money. For most companies, taking out a business loan from the bank simply isn’t an option. You may not have established credit yet, or if you have bad credit a loan is completely out of the question. Many banks are holding their money tightly and not approving loans as often as they used to in the past. Accounts receivable financing may be the answer you have been looking for.
So what exactly is Receivables financing? This kind of financing allows you to sell your unpaid invoices and receive almost instant cash flow. Typically your larger customers are the slowest ones to pay their invoices. You know the money is coming in – eventually, but you need the money now. You can sell your invoices to an accounts receivable financing company and get the money advanced to you for a small fee. You may need to wait 60 to 90 days to get paid by your clients, which could set you back financially and stop you from fulfilling orders and growing as a company. Get your money almost instantly from invoice financing companies.
Receivables financing has so many benefits over the usual bank loan. The biggest advantage is not having your credit score checked. As mentioned previously, many startups simply don’t have the established credit to be able to get a large bank loan. Others may be struggling to keep the lights on and doors open, and are on the brink of bankruptcy. While these are the companies who need the loans the most, it is very unlikely that they would ever be approved for a bank loan – especially with the economy the way it currently is. Bank loans also involve a complicated procedure where you need to provide your operational history, fill out endless forms and provide verification. Many companies do not have the time for this and need the cash immediately to get going. In fact, many receivables financing companies can get you the cash within just a few days.
Another benefit to factoring your invoices is that you will have the help of a team of professional collection agencies to assist you in accumulating the money owed to your business. This will allow your sales team to focus on the more important tasks at hand, instead of spending countless hours phoning up clients who are late with their payments. Let the collection specialists do what they do best while you do what you do best – running your business.
Whether you want to grow your business, need a cash advance to keep the lights on or you are simply struggling to collect your invoices, accounts receivable financing could be the solution you were hoping for. There are several great companies out there who provide this service, however you should work with the company that best suits your needs. Find out their fees and payment terms before deciding to sign any contracts. Always make sure you are able to follow through with any contractual agreements that you make.
Author Bio. : Accounts receivable financing could be the solution you are looking for.
Receivables financing allows you to get cash flow without accumulating debt. Visit http://universalfunding.com for more information.