Can Accounts Receivable Financing Help Your Business?
Payment cycles for organizations that have other businesses as clients may extend to 90 days or more. For companies with little or no cash reserves, this delay can be financially challenging. Accounts receivable financing is designed to help businesses continue operating until outstanding funds are collected.
Types of Businesses That Use Receivables Financing
Organizations in a variety of industries experience seasonal spikes, growth spurts and go through difficult economic phases. If this sounds familiar, you may benefit from accounts receivable financing. We finance start-ups, companies that are in bankruptcy and those that are losing money.
Benefits of Accounts Receivable Financing
If invoices are open due to disputes, slow or non-payment, cash flow can be impacted. Unexpected or large orders can also be challenging to cover. AR financing ensures payroll, inventory, operating expenses and expansion costs are covered. Other benefits include:
- Funding in as little as 24-hours
- Frees up cash flow
- No additional collateral is required
- Only certain invoices are involved
- Less restrictive than equity funding
- No-cost credit insurance for customers and clients
- Can be flexible based on current needs
- Funding can increase sales and receivables
- No personal guarantees
Financing is based on the credit of your customers, not your business. Unlike a business loan or line of credit, no debt is incurred. You are selling an asset.
Contact Us Today
At Proactive Funding Solutions, we can help you grow your business. Contact us today to discuss your needs with one of our specialists.