When banks turn you down for a bankable 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 receivables to a financial institution. The average amount financed against your outstanding invoices aka (invoice factoring) is approximately 60 to 85 percent, depending upon your credit score. Accounts Receivable loans are an alternative to a traditional conforming business loan. 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.
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.
You can also factor your aging receivables as collateral.
Solutions Number Two: Accounts Receivable Line of Credit Over a Business Line of Credit
If you wish not to utilize your invoices, select an business line of credit against your aging receivables. It is a quick way to get cash fast for your business, as long as there no other liens against your accounts receivable, lenders require to take first lien position. If your vendor places a lien against your accounts receivable, we ask your vendor to subordinate their lien until the accounts receivable lender is in first lien position.
If you have a deadline for expansion or the urgency to get that extra cash fast, factoring your Accounts Receivable for capital is a good alternative way to go.
Minimize your company’s financial risk levels by factoring your Accounts Receivable for capital. We welcome the following qualified industries for Accounts Receivable financing click here for details
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For more information on how we can best locally serve your Palm Beach and Jupiter FL accounts receivable loan , please fill out the online contact form about your concerns or give us a call at 561.244.9914. Read what our valued clients have to say about First Pro Capital on our Testimonials page.
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