Account Receivable Financing Could be the Solution Your Business Has Been Looking For
If you are a small business owner who has not yet heard of account receivable financing, be sure to read on. It just might solve one of your biggest problems.
It All Has to Do with Business Cash Flow
Did you know that business cash flow is a problem for many? Many businesses wait weeks – even months – to get paid on outstanding account receivables. This typically creates major cash low issues because they provide their goods and services and absorb those costs until they eventually get paid. Sometimes this is as long as 90 days later!
Offering better terms to your clients can be the cause. For a business looking to establish relationships with clients, offering longer payment terms is one way to sweeten the deal. So this is a great benefit your business can offer to preexisting and hoped-for clients. This is similar to working with a starter vendor which gives Net 30 terms.
Getting Net 30 (for example) terms means you get extra time to pay. And then you extend the same courtesy to your customers, but in the meantime, any bills your business gets must be paid.
Business cash flow is a problem for many. But what is the remedy? Account receivable financing! With AR financing you can regularly secure money against receivables in as little as 24 hours.
With AR financing, you can get monthly rates between 1.25% and 5%, and you can get financing as high as $20,000,000. All of this is possible, even with severely challenged personal credit.
Account Receivable Financing has an Easy Qualification Process
Account receivable financing is extremely easy to qualify for. You will not need financials or good credit to get approval. To qualify for AR financing your business must be open for at least 12 months. The lender will review your existing receivables or purchase orders.
The lender will also look into the companies that your receivables are with. If the companies who owe you money have a good history of paying their debts, you can easily get approval regardless of your personal credit quality. That makes this a great program for business owners with a going concern and established customers.
Demolish your funding problems with 27 killer ways to get cash for your business. Get money even during the worst of a recession.
Do You Have Credit Issues Now?
An accounts receivable financing program is perfect for business owners who have credit issues. Lenders are not looking for, nor do they require good credit to qualify. You can even get approval and get an advance of 80% of your receivables. And this is possible even with severely challenged personal credit and low credit scores.
You can get approval with a personal credit score as low as 500, even if you have recent derogatory items and major collections on your credit report. Lenders truly do not care about your personal credit. They care more about the credit of the companies who you have the receivables with.
This is one of the best and easiest business financing programs in existence – and you can qualify for it. Plus you can get really good terms, even if you have severe personal credit problems.
You Can Get Fast Funding
After the lenders review your account receivables, you can receive your initial approval and funding in 3 weeks or less. After you get initial approval you will get the ability to get paid on future receivables within 24 hours.
You Will Pay Really Low Rates Regardless of Credit
With our AR financing program, you can get approval with really low rates. This is so even if you have severe credit challenges. Fees are typically 2 to 4%, even if your personal credit scores are as low as 500.
This means you can get money tomorrow, instead of waiting weeks or months to get paid. AR financing can correct your cash flow problems, fast!
You can get this form of funding for extraordinarily little money. It costs less than the cost of you accepting a credit card payment from your customers. There are very few other programs in existence that can give you these low rates even if you have severe personal credit challenges.
AR Financing Requires some Documentation
You will need to provide your application, and 3 months of business bank statements. Lenders will also want to see your business debt schedule, and of course your accounts receivable report.
Demolish your funding problems with 27 killer ways to get cash for your business. Get money even during the worst of a recession.
AR Financing Has Powerful Benefits
You can get 24 to 48 hour preapproval and receive an advance of 80% of your receivables. You will pay monthly rates between 1.25% and 5%.
Then you receive the remaining 20% of your outstanding invoices, minus a fee, after the invoice is paid.
Approvals
You will go through an easy account receivables review for approval. And you pay no application fees. It is possible to get approval with truly bad credit.
You can get approval with revenue requirements as low as $20,000 per month. This depends on the amount of account receivables, or the asset being factored.
More Benefits
One of the best benefits of AR financing is, you can get paid on future receivables in 24 hours. There are no financials required. Account receivable financing could be the solution your business has been looking for.
Here are some more benefits of this form of financing. Your business gets money, without having to rack up expensive debts. The process is easy and fast.
With more cash on hand, your business will pay its own bills faster. And this thereby improves your company’s own business credit score.
It works out to be a win-win situation. AR financing gives your business the best of both worlds. You get paid a substantial chunk of your outstanding invoices. You stop carrying so much in receivables on your books from week to week or even month to month.
Benefits for Your Clients and Customers
With account receivable financing, at the same time that you get a cash infusion, your clients get far more favorable payment terms, directly from your business.
With the terms you can provide to your clients, they will be more likely to want to do business with you, and not your competition. And you do not have to be the bad guy and renege on your terms because your business needs a cash infusion.
Demolish your funding problems with 27 killer ways to get cash for your business. Get money even during the worst of a recession.
Account Receivable Financing: Takeaways
Many businesses have cash flow issues. They extend longer terms to their clients, in an effort to establish a long-term financial relationship. But then they have to wait for payment. Account receivable financing can fix this problem.
With AR financing, you can still extend good terms to your clients. But you will see a good 80% of your invoices come in a lot faster. It becomes a win-win situation. You get paid, and your clients get favorable terms from you. And you forge a long-term financial relationship.
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