Accounts Receivable Factoring
Do you know what accounts receivable factoring is?
Your business may have been providing a generous credit policy to your customers. Doing so can be a proven strategy to attract more business. It seems like a terrific, financially sound idea. It is a financially sound idea, except for one thing: it means you have to wait for your accounts receivable to be paid. As a result, your assets become tied up in outstanding invoices and you risk losing liquidity while you wait weeks or even months for your customers to pay their invoices. Your customers are not late with their payments, so you cannot truly fault them for following the payment schedule which everyone agreed to, outlined, and signed off on.
As a result, you may end up missing growth opportunities. You might even have trouble paying your own outstanding invoices. Or, you might lose out on sales because you cannot afford to restock your inventory in a timely fashion. Meanwhile, banks across the nation have been tightening their loan practices. It has become harder than ever to get a business loan, and it is practically impossible for small businesses and start-ups.
Here is how accounts receivable funding can really help.
Essentially, the concept behind it is that you sell your accounts receivable to a third party in exchange for an accounts receivable advance. In exchange for a small fee, your invoices get paid. As an alternative to more traditional forms of business financing, these accounts receivable payments provide your business with greater liquidity. You get an immediate infusion of cash to help your business expand, make repairs, meet payroll, or even take advantage of opportunities which could end up being missed. Plus, you can save your hard-earned equity in your business, rather than having to sell it off to keep going.
Carter Funding has the experience and the know-how to get your small business or start-up an accounts receivable line of credit. Qualifying for an accounts receivable advance is easy.
While some factors might vary, the following items are universal:
- You must have a B2B (business to business) or B2G (business to government) business with creditworthy invoice clients
- Your invoices and/or accounts receivable must be due or payable within 90 days
Our accounts receivable factoring has no credit limit. It is not a loan, so it does not add to your business liability or your debt. Your business does not need to have a great credit history, either. Invoice financing programs are not dependent on your business’s credit, but instead dependent on your customers’ credit. Let us factor your account receivables and give your business a new funding boost.