What Does Accounts Receivable Financing Mean?
Get Working Capital Before Your Customers Pay Their Bills
The financial state of any business ebbs and flows like a tide. One second you may see a positive balance in the books, and the next, next to nothing. Accounts Receivable Financing (AR Financing) is a convenient way to manage those changes. AR Financing will give you the flexibility of getting cash when you need it, and leave your finances as is when you don’t.
The Accounts Receivables in AR Funding
Accounts Receivables Funding is an effective method of getting money owed to you sooner than your debtors may have planned. By working with a business financing company, the factor takes over your accounts receivable invoices, giving you working capital to work with now rather than later.
Accounts Receivable Financing is used for practically any purpose in your business. Factors have helped thousands of companies get the money they need for:
- IRS Payments
- Payroll Payments
- Machinery Purchases
- Purchases of Supplies
- Overhead Costs
- Business Expansion
- Taking Advantage of a Supplier Discount
- Seasonal Demands
The Best Thing About Accounts Receivable Financing is That You Do Not Incur New Debt!
How does Account Receivable Funding Work?
Accounts receivables financing is a no-fuss method of getting money owed to you sooner than you expected. Not every business is financially equipped to continue to the next job while awaiting the 30, 60, or even 90 days it might take to be paid for the previous one. What a factoring company does is buy those outstanding invoices from you. That way, your daily operations are never interrupted.
The Debt-Free Way to “Borrow” Money
Securing a business bank loan for working capital is not only a complicated process, but it is also counter-productive. Even if you obtain a business loan or a Merchant Cash Advance, you now have a new debt to add to your monthly expenses, one which is growing exponentially from interest. Possibly a ton of interest.
With accounts receivables financing, the factor is not loaning you anything. They are merely advancing you money that you would have gotten in a few months anyway. Your monthly overhead expenses won’t change, and neither will your business credit.
What Does Accounts Receivables Financing Mean?
Accounts receivables financing is a lending term to describe an asset-based business loan, where the business asset is the money due to them in unpaid invoices. Factors will pay you a percentage of the invoice value up to 92% and then assume responsibility for payment from your customer. They respect the terms you have agreed upon with your clients and patiently work with their accounts payable department to make good on the bill. Meanwhile, you already have the cash in hand and can continue going about your daily business with success.
Does Your Business Qualify for Accounts Receivable Financing?
Factors have a hand in helping businesses of all types get the working capital they need. They work with blue-collar companies like cable installers and white-collar industries such as staffing agencies. No business is too small or too big to benefit from the type of alternate lending for a business solution that they can provide.
No issue is too scary to consider. Business customers have obtained working capital through factors even when they have had:
- IRS Issues
- Poor Personal or Business Credit
- Less Than 2 Years Business Experience
- Been Losing Money
- Client Concentration Issues
- Been Looking for Non-Recourse Invoice Factoring
- Line of Credit That is Too Small for the Business
- An Unexpected Growth Spurt
- Government Contracts
An added benefit of accounts receivable funding is that it does nothing to your business credit. It could help increase your creditworthiness by helping you to stay out of debt. You lose no stake in your company. You don’t have to offer up valuable assets as collateral either, making this one of the most straightforward and risk-free financing solutions available to any business owner.
Unexpected Solutions for Your Business’ Financial Problems
What a lot of business owners fail to realize is that there are financial business solutions for any issue that doesn’t involve banks. Factors deal with international trade financing, funding for distributors through purchase order funding, and supply chain financing if you need money to fulfill an order obligation. Each scenario has its specialized funding method that requires the expertise that you will find with Accounts Receivable Funding.
Never believe that your business funding problem is insurmountable. With ARFunding.org, where there is an invoice, there is a way.
How Much Does Accounts Receivable Financing Cost?
When ARFunding.org purchases your invoices, we give you a certain percentage of the value upfront. This could be as high as 92%, depending on the creditworthiness of your customer and the business type. You get the balance when we receive payment from your client, with a small fee deducted. That fee is peanuts compared to what you would pay in interest on a merchant cash advance or ACH loan.
Our mission is to enable and help you grow your business, not stifle it so that we can enjoy years of a successful partnership. Call ARFunding.org now and get working on a better path towards working capital.
What is the Application Process?
With ARFunding.org, you will breeze through the application process for accounts receivables financing and have your working capital in time to put it to work for you. An easy to understand application can be filled out and submitted online, or you can call ARFunding.org and get direct help from a business finance expert.
We know the need for working capital is dire; we work hard to get the information we need so you can get back to business. The entire process is quick and easy and allows you to keep your mind on your business, right where it should be. Once signed on with ARFunding.org, you could see turnarounds on your cash advance requests in as little as 24 hours. No bank is going to give you that kind of cash in that short amount of time.
If you aren’t sure which type of alternative lending option is right for your circumstance, contact us to speak with a pro. Once we understand your underlying business structure and how your payments work, we can help you make the right financing choice for your company.
Watch Your Business Grow and Thrive with Accounts Receivable Financing
Most importantly, accounts receivable financing gives you a better opportunity to expand your business. By helping to build a better credit report, and keeping up with your contracts and orders, you realistically have the chance to grow your operations. We help you work towards success, as we see our customers as valuable business partners that we want to keep around.
If your business needs have suddenly surpassed your means, don’t hesitate to call ARFunding.org now. Our quick solutions to working capital problems will provide you with a flexible way to fund whatever you need. With our services always at your service, you get a financial edge that your competitors will envy.