Accounts Receivable Financing
Accounts receivables financing has the potential to provide your business with an unlimited source of operating funds. It allows your business to acquire advances on existing receipts to ensure a steady influx of capital to grow your company.
Unlimited Funding With Accounts Receivables Financing
Accounts receivable financing (AR financing) provides small businesses with immediate cash for their unpaid invoices. Instead of waiting weeks or months for customers to pay, small business owners can partner with a funding company to get paid right away.
For small businesses, AR financing offers several key advantages. It improves cash flow, which is often the biggest challenge facing growing companies. Small businesses can cover payroll, buy inventory, and handle day-to-day expenses without worrying about when customers will pay their bills. This type of financing also helps small business owners avoid the awkward situation of constantly chasing clients for payment.
AllCap Financial specializes in receivables factoring services that help small businesses unlock the cash tied up in their invoices. By converting outstanding invoices into immediate working capital, small businesses can focus on growth instead of cash flow problems.
How it Works
Also called Factoring, accounts receivables financing involves selling your invoices to a Factor, an outside source, who advances you money based on the value of the invoices minus a service fee.
The factor becomes responsible for collecting the debt from the original purchasers of your products. This method works especially well with credit-based businesses, such as the retail and restaurant industries. Factors verify customer’s credit history and inform you of bad risks via monthly statements. The benefits of accounts receivables financing are many:
- You have 24-hour access to cash.
- Any type of business can qualify.
- When your sales go up, so does your funding.
- You have no fixed payments.
- Credit insurance on clients costs you nothing.
- Financing doesn’t require a personal guarantee.
With a factor in charge of the accounts receivable portion of the business, you can stop spending your time on collections and start focusing on growing your company.
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The financial professionals at AllCap Financial are eager to provide you with a no obligation evaluation of your financial needs at no cost to you. Please contact us today.
AllCap Financial
If you are in need of commercial financing, you need look no further than the nationally recognized team of highly trained financial experts at AllCap Financial. We lead the industry in commercial finance and business loans of all types. With our nationwide network of lenders, our goal is to provide businesses of all sizes with the capital they need to achieve success.