What Are the Pros and Cons of Accounts Receivable Financing?
One of the most versatile options for getting working capital for your business is accounts receivable financing. This funding solution allows you to turn unpaid invoices into immediate capital. This option is completely trustworthy and popular; many companies large and small use AR financing to supplement and strengthen their normal cash flow. Is financing receivables right for your business?
What Are the Benefits of Accounts Receivable Financing?
Turning unpaid invoices into working capital may sound too good to be true, but it’s actually fairly simple. As long as your customers have a history of paying, we know that the risk to extending a cash advance is minimal. This allows us to give you immediate financing whenever you need it. This provides many benefits:
- Financing for any business purpose
- Capital for companies with less-than-ideal credit
- Fast processing and funds deposit
- Easy application process
- No payments or debt
- No assets or guarantees required
Your personal or business credit doesn’t have much of an impact on approval. The amount of capital offered is directly related to the size of the invoice. This gives you the ability to adapt depending on your current needs.
When Is AR Financing the Best Choice?
It’s true that accounts receivable financing has higher interest rates than a conventional, long-term bank loan; however, the trade-off is that approval goes through far faster. AR financing is ideal for emergency purposes, great opportunities, sales and discounts, and other immediate needs.
To learn more about all the options available, contact our team right away.