Accounts Receivable Financing
The Benefits of Accounts Receivable Financing
If you’re looking for a way to get cash flowing faster in your business, accounts receivable financing could be a great option. Sometimes called invoice financing or factoring, it works like this: you sell your unpaid invoices to a financial partner (called a factor) at a small discount, and in return, you get cash right away to keep your business running smoothly. Here’s how it can help you:
Keep Your Cash Flowing
Instead of waiting 30, 60, or even 90 days for customers to pay, you get immediate cash to cover your bills, buy inventory, or handle any expenses.
Quick Access to Funds
Unlike bank loans that can take weeks or months, this financing usually gets approved fast, and you can have the money in your hands within just a few days.
No Need to Put Up Collateral
You don’t have to risk your assets or property since this type of financing doesn’t require collateral. That makes it easier to qualify, especially if you don’t have a lot of assets.
Financing Company will Handle the Collections
When you sell your invoices, the factoring company takes on the responsibility of collecting payments from your customers. That means less hassle and less risk for you.
Grow Your Sales
With better cash flow, you can offer your customers more flexible payment terms, which can help you win more business and increase revenue.
GO Funding Now
Accounts receivable financing is a business funding solution where a company sells its outstanding invoices to a factoring company in exchange for an immediate cash advance. This popular financing option helps businesses improve cash flow without waiting for customer payments.
When you sell your invoices to the factoring company, you get fast access to the cash you need—without creating new debt. You receive payment right away, while the factoring company takes on the responsibility of collecting payment from your customers.
In short, accounts receivable financing is a quicker way to get paid for the services you provide.
