Accounts Receivable Financing – Factoring
Every business needs to maintain their cash flow in order to remain profitable and healthy.
Small to medium-sized (and in some cases large) businesses that make or distribute products and/or provide services to other businesses in virtually every industry can benefit tremendously from A/R Financing.
Any domestic business-to-business company (meaning a business that sells products or services to another business) has accounts and invoices that do not get paid for 30, 60, 90, even 120 days.
This has a tremendous effect on cash flow as the business owner is waiting to get paid for goods or services that they already delivered.
You will be able to offer accounts receivable financing and convert the asset of receivables into another more liquid and accessible asset, cash, and do it within 48 hours. Your client receives payment immediately and is, therefore, able to use the cash in ways that will strengthen their business; e.g. advertising, purchasing new equipment, bringing in additional personnel, etc.
This is not a loan based on your client’s credit but rather an actual purchase of receivables and is based on the business your client sells to.
Best of all, you get paid up front and on a continuing monthly basis from your lenders! Residual income at its best.