Is Turning Your Accounts Receivable Into Cash Right for Your Business?

Is Turning Your Accounts Receivable Into Cash Right for Your Business?

When banks turn you down for a business loan, what are you going to do? Utilize accounts receivable financing, a practical approach of getting cash fast.

Factoring is the process of selling outstanding invoices to a financial institution. The average amount financed against your outstanding invoices is approximately 60 to 85 percent, depending upon your credit score. It’s true; there are non-conforming Accounts Receivable loans available for business owners. The financial institution then collects the outstanding invoices on your company’s behalf which you had given authorization to do so. Later, the financial institution distributes the remainder of the balance that is left from the invoice or invoices minus the financing fees back to your company.

Why Should I Choose an Accounts Receivable Loan Over a Business Line of Credit?

Factoring your accounts receivable for working capital, expansion or just a quick way to obtain cash by freeing up those outstanding invoices can help your company’s cash flow fast.  If you have a deadline for expansion or the urgency to get that extra cash fast, factoring your Accounts Receivable for capital is the way to go.

A Business Line of Credit is a recourse loan whereas Accounts Receivable Financing is a non-recourse loan, since you had given the financial institution the responsibility to manage the invoices on your company’s behalf. Basically, when you sign for an Accounts Receivable loan, you automatically secure the loan by selling your invoices to the financial institution to manage.

Minimize your company’s financial risk levels by factoring your Accounts Receivable for capital. We welcome the following qualified industries for Accounts Receivable financing:

  • Accountants
  • Attorneys
  • Construction Companies
  • Dentists
  • Doctors
  • Energy
  • Healthcare
  • Manufacturing
  • Industrial
  • Restaurants
  • Retail
  • Staffing Companies
  • Technology
  • Transportation

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For more information on how we can best serve your Chicago factoring loan and credit needs, please fill out the online contact form about your concerns or give us a call at 866.885.5131. Read what our valued clients have to say about First Pro Capital on our Testimonials page.

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