Accounts receivable financing allows businesses to get the cash they need to operate their day-to-day operations without having to secure a loan from a bank. However, there is a misconception that this type of financing is only available to large corporations and not small businesses. This simply isn't true; in fact, many small companies benefit from an accounts receivable loan more than their larger counterparts because it's easier for them to secure financing with lower interest rates and shorter repayment periods.
Accounts Receivable Financing (AR financing) is not a loan. It’s a non-recourse factoring transaction.
You don't have to pay back the AR financing company, and they won't take your business if you miss payments on your invoices. Instead, they will collect the money directly from your customers and then pay it to you as soon as possible—usually within 24 hours after they receive payment from the customer.
AR financing is a great way for businesses to get cash flow without having to pay interest on a loan. It can also be useful if you’re trying to build up your business credit score since it doesn't affect the amount of money owed on invoices.
Accounts receivable financing is a simple, risk-free solution to your cash flow problem. There is no collateral required, and you'll never have to sign any personal guarantees. You can even choose not to pay interest on the money borrowed!
In fact, once we've agreed on the terms of the loan contract, there's no need for us to see any financial statements or other documents from your company at all—if you want our money, you can simply start using it right away without any further paperwork required.
If you have an urgent need for cash, account receivable financing can provide immediate relief. The time it takes to get funding depends on the type of AR financing you choose. Some types are faster than others—such as factoring and invoice factoring—but all will provide funding within 24 hours if you need it fast. To find out how quickly your provider can fund your invoices, contact them and ask about same-day funding options or other ways they may be able to help with your cash flow situation.
Accounts receivable financing can help you grow your business. If you are looking for new ways to invest in your company, consider using an AR financing company like [Finance Company]. With this type of financing, you can use the money for a variety of things, including:
· Investing in new equipment or technology
· Hiring new employees
· Expanding your business operations
· Purchasing inventory and paying suppliers
Many businesses are often denied financing because of a bad credit score, bankruptcy or foreclosure. However, our accounts receivable financing is an option for businesses with any kind of credit history. We will work closely with you to find a solution that works for your business.
We understand that even though your business may have been through hard times in the past, it doesn't mean that you can't be successful in the future! Our goal is to help you grow and thrive by providing funding options tailored specifically to what makes sense for YOUR unique situation.
There are many different types of accounts receivable financing and each has its own set of pros and cons. But one thing they all have in common is that they don't affect your credit score negatively. So you don't need to worry about getting denied for the financing because your credit score isn't good enough—you can still get approved even if it's not perfect.
As long as you pay off the loan before it's due, it won't affect your credit score at all. You can still use your credit cards and pay for other expenses while taking out an A/R loan as well (as long as you're using the funds from this loan to pay them off).
All in all, accounts receivable financing is a great way to get your business back on track. If you’re looking for an alternative to traditional loans and don’t have time to wait on approval, give us a call today!