What is Accounts Receivable Funding? It is the purchase of Accounts Receivable by private funding sources as opposed to obtaining a loan against them through traditional bank financing. Accounts Receivable Funding is similar to traditional bank financing but has many more advantages:
- Offers immediate and dependable access to unlimited working capital.
- Quickly strengthens your company’s financial statements and credit rating.
- Makes it possible for you to obtain cash discounts for early payment of your accounts payable (or any other debt.)
- Gives you the ability to offer better credit terms to your clients.
- Increases your purchasing power and provides cash for marketing, expansion, and new equipment.
- Can enable you to meet payroll, pay your taxes on time and eliminate the need to file bankruptcy.
With Accounts Receivable Funding, your invoices for goods or services rendered to your customers can be converted into immediate cash to better manage and expand your business… and utilizing a streamlined application and quick approval process (unlike bank loans that can take weeks to process and require volumes of paperwork, most applications are approved within 24-48 hours.)