Receive Working Capital with Accounts Receivable Financing
Written by moxysupport on May 20, 2015
Does your manufacturing company need working capital? Is your growth and success outpacing your customers’ timing on paying invoices? If so, we’re sure you are investigating several sources to fill your need for increased cash flow, such as business loans from banks, Business Administration loans, credit cards or lines of credit, and accounts receivable financing.
Business loans require detailed financial documents including an income statement, a balance sheet, a cash flow statement and a business plan. Any lender will want to know about your business decision-making history and projected income. Even then, only about 16 percent of applications are approved, and the process takes a long time from application to fruition.
Business Administration loans are really guarantees that back loans, not the loans themselves. But, this guarantee sometimes makes banks more willing to lend money, if going into debt is what you want to do and doesn’t put your company at risk.
Credit cards or lines of credit include higher interest rates than loans, but you can access funds, use the money any way you wish, repay it and cycle through the process over and over. The danger is in accruing so much debt that you need help getting out from under it.
Accounts receivable financing lets you use your own unpaid invoices as security to obtain the funding you need. You sell the invoices to a reputable firm like US Funding, we give you a percentage of what is owed to you in a lump sum to use however you wish, and we collect the debts for you. Unlike bank loans, accounts receivable financing provides money quickly – often within just a day or two – and there is no debt, no interest, no lengthy documentation, and no risk to incur.
• Accounts receivable financing leaves you debt-free by leveraging your company’s existing unpaid invoices, instead of borrowing someone else’s money.
• Accounts receivable financing protects your equity because we do not want part of your business; you maintain the control you have always had.
• Accounts receivable financing allows you to determine how much is factored; you don’t have to involve all your unpaid invoices or put a lien on anything else.
• Accounts receivable financing doesn’t impact your credit rating because you aren’t borrowing anyone else’s money. Plus, the increased cash flow allows you to pay bills on time and preserve good financial standing.
• Accounts receivable financing provides funds quickly for payroll, inventory, equipment, or any other need, whether temporary or long-term.
At US Funding, we know that this type of financing is not exactly right for every single company. We will use our decades of combined knowledge and experience to analyze your company’s situation and advise you on the best course for you. If accounts receivable financing is the most practical and beneficial resource for your needs, you can trust US Funding to customize a plan that quickly gives you access to your own money without risking your company in the process.