A/R funding is at times referred as invoice financing. This kind of funding provides an ideal solution for firms in need of finances that may be not available from the traditional lenders. Majority of the companies require additional cash flows aimed at supporting seasonal demands, growth, business opportunities or solve any short-term cash requirement. Flexibility and prompt cash for your business is assured through accounts receivable financing.
It is because of the many beneficial reasons that A/R financing has been steadily gaining popularity. The advantages that are posed by this kind of funding are way too good to resist. This method improves the financial profile and credit rating of your company. The various benefits brought by accounts receivable are as follows:
Quicker cash flow. Financing your business through this mode provides an immediate opportunity of changing the credit sales into cash flow. By obtaining outstanding receivables that are monetized through commercial funding firm, you enter into a position whereby you can get money any time you need it badly. This saves time that would otherwise have been spent waiting for several weeks for a client to make his payments.
More focus in put on the business. Acquiring an easy working capital saves your resources and consequently giving you comfort. You now get into a comfortable position where you can redirect all your energies on different business activities, like sales and marketing, capable of providing much profit. That time that one would have spent collecting payments from defaulting clients is now devoted to bolstering your business.
More user friendly. Any type of business, large, medium or small can opt for A/R funding. Setting up the accounts receivable factoring lines takes just some few days. Unlike the conventional bank loans, you will not make payments or create a debt. Moreover, you are free to finance as much or as little as you wish.
Additional services offered. Most funding firms provide necessary help in managing your entire portfolio of accounts receivables. These comprise of invoice processing, reporting and posting. As a result, you gain a lot of time to focus on activities that are revenue-generating. In most situations, factoring firms help in determining credit rating of potential clients before you actually make sales to them.
The firm checks on the payment history of a potential client before it signs him up. By doing so, you reduce the prospect of a bad debt by a significant margin, and you start dealing with clients who have a reputable track records. Instances of getting into a financial crisis such as bankruptcy are eliminated.
It is because of the many beneficial reasons that A/R financing has been steadily gaining popularity. The advantages that are posed by this kind of funding are way too good to resist. This method improves the financial profile and credit rating of your company. The various benefits brought by accounts receivable are as follows:
Quicker cash flow. Financing your business through this mode provides an immediate opportunity of changing the credit sales into cash flow. By obtaining outstanding receivables that are monetized through commercial funding firm, you enter into a position whereby you can get money any time you need it badly. This saves time that would otherwise have been spent waiting for several weeks for a client to make his payments.
More focus in put on the business. Acquiring an easy working capital saves your resources and consequently giving you comfort. You now get into a comfortable position where you can redirect all your energies on different business activities, like sales and marketing, capable of providing much profit. That time that one would have spent collecting payments from defaulting clients is now devoted to bolstering your business.
More user friendly. Any type of business, large, medium or small can opt for A/R funding. Setting up the accounts receivable factoring lines takes just some few days. Unlike the conventional bank loans, you will not make payments or create a debt. Moreover, you are free to finance as much or as little as you wish.
Additional services offered. Most funding firms provide necessary help in managing your entire portfolio of accounts receivables. These comprise of invoice processing, reporting and posting. As a result, you gain a lot of time to focus on activities that are revenue-generating. In most situations, factoring firms help in determining credit rating of potential clients before you actually make sales to them.
The firm checks on the payment history of a potential client before it signs him up. By doing so, you reduce the prospect of a bad debt by a significant margin, and you start dealing with clients who have a reputable track records. Instances of getting into a financial crisis such as bankruptcy are eliminated.
About the Author:
Connor G. Schiffman has 27 years of experience in commercial lending including factoring, asset based lending, and banking. Connor helps readers manuver through all the account receivable options providing practical and useful knowledge to better understand all your lending options. If you want to learn more about Working Capital Loans he recommends you check out www.receivablefactoring.net.
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