Accounts Receivable Financing May Be Just What Your Business Needs
Written by US Funding on October 13, 2015
Your successful small business has to maintain a healthy cash flow for all kinds of reasons, not just to make payroll and pay monthly bills. For example, you may need to purchase extra inventory to meet sudden demand, or your board of directors may want to invest in an opportunity that won’t be available long-term, or your sales department may request an extension of credit for a valued major customer, or any number of other legitimate business scenarios. When a situation like this arises, if you have adequate outstanding invoices to cover the expenses, but do not have the cash in hand, yet, what can you do? Accounts receivable financing from a reputable firm like US Funding may be just what you need.
Accounts receivable financing – also called invoice financing or factoring – provides immediate, unrestricted funds to companies that may not have access to traditional loans or may not want to issue stock, include more investors or add debt to the balance sheet. Accounts receivable financing works like this:
- Your company identifies those customers with unpaid invoices totaling the amount of cash needed immediately.
- You document that the work was done satisfactorily and sell these invoices to US Funding for as much as 90 percent of their face value.
- We advance you the total lump sum, usually within 24 hours, and you have it in hand to use any way your small business needs.
- We proceed to collect all the unpaid invoices.
- You receive the remaining ten percent of the total after customer payments are made, minus our previously-agreed fee.
There is no application fee and no monthly minimum. Our rates are absolutely competitive with other accounts receivable financing firms and our state-of-the art systems and proven methodologies ensure that you will benefit from the most accurate record-keeping and the most efficient operations. We will work with you to develop the most favorable arrangement to suit your industry and your company.
Benefits of Accounts Receivable Financing
- Accounts receivable financing processing time is about two weeks, much shorter than that of a bank or potential investor.
- Accounts receivable financing does not require you to complete stacks of paperwork or reveal your company’s financial records in order to qualify.
- With accounts receivable financing, you do not have to provide, and risk, collateral to secure the funds.
- With accounts receivable financing, you receive cash before your customers pay their invoices, which saves valuable time.
If your small business is experiencing too much time between invoicing your customers and receiving payment, and you are concerned about missing out on growth opportunities or being able to meet obligations, contact us by clicking the “Apply Now” button to access an application, or call our office at 866-812-9771 to get started right away. Let US Funding provide a short-term solution for you that will not impact your debt load. Your small business doesn’t have to wait 30 or 60 or 90 days for the cash it needs.