Accounts Receivable Financing
Cash Flow Accelerated
For many B2B businesses, accounts receivable financing is an incredibly useful funding tool for working capital. Essentially, an account receivable facility enables manufacturing, B2B services, transportation, wholesalers, or construction companies to get working capital by leveraging their receivables. Once setup the company simply submits new qualifying invoices to receive same or next funding of up to 85% or more of the invoice amount.
An AR Facility accelerates the payment cycle, smoothing out cash flow and providing companies the ability to grow. Having the ability to get paid upon invoicing rather than waiting for customer payment allows for steadier and more predictable cash flow. It also enables the company to pay its vendors more timely which can allow for preferred pricing and early payment discounts. Business with an AR Facility in place can also take on more work and grow sales as they know they will have the capital available to carry additional payroll expense or buy more product to meet new demand.
Key Benefits to Accounts Receivable Financing
Accounts Receivable Financing is beneficial for businesses in many ways. Below are a few examples:
· Quick Funding – funding can be same or next day, once the facility is in place
· Short Term – the usual cycle to invoice payment usually between 30 to 90 days
· Low Cost – shorter terms means manageable expense
Taking advantage of Accounts Receivable Financing means quickly accessible capital most B2B business.