Benefits of accounts receivable financing
Invoice financing improves your business cash flow: Waiting on a customer’s payment terms can put a financing strain on your business and cash flow. Using invoice factoring provides you fast access to cash, without having to ask your customers.
Hassle-free approval: Getting approved for a loan by a traditional lender requires a business to have collateral, years in business, and a good credit score. This is why many small businesses do not qualify for a bank loan. Account receivable financing is based on the customer’s creditworthiness, not your business’s.
Fast access to cash: You get immediate access to the cash you’re owed when you finance your invoices. As long as you work with a creditworthy customer, an invoice financing company will advance you the value of your invoice in as little as 24 hours.
Why consider accounts receivable financing for your business
Invoice financing is beneficial for businesses that operate in the B2B space with clear repayment terms. Financing your receivables allows you to access the cash tied up in the process of long payment cycles. Having access to those funds helps you maintain liquidity, expand your business, and pay your employees.
Approval and lending decisions are based solely on the quality of the invoice and the customer’s reliability. This makes the review process hassle-free and fast, and in some instances, you can have funds issued the same day you apply.
Consider accounts receivable financing for your business if: