Accounts receivable financing has grown in popularity in recent years, and it’s no secret why: instead of waiting for long pay cycles to get paid on invoices, many businesses enjoy the advantages—and financial freedom—that come with receiving near-immediate cash payments.
Benefits of accounts receivable financing include:
This one is obvious, but it’s one of the most attractive aspects of A/R financing. Instead of waiting on 30-, 60- or 90-day pay cycles, factoring can get cash in your hands in a much shorter time frame.
Factoring is not a loan, so it may lead to a cleaner balance sheet because you may not be not taking on additional liabilities.
In addition to the debt-free cash flow, there are potential benefits for your company’s credit score, too. With timely funding, you can stay on top of your payables.
Many businesses, from startups to mature companies, do not have the collateral or credit profile to take out a loan. Some companies are not interested in making monthly loan payments. In either case, A/R financing is a great option.
The A/R financing application process is fairly simple compared to a bank loan. And once you have been approved and set up, the ongoing funding process is simple. Your line can easily grow as fast as your company.
Factoring fees are substantially less expensive than typical MCA (Merchant Cash Advance) or other types of alternative and startup funding.
When you are confident that you can pay your bills and meet payroll on time it is easier to focus on the operational aspects of your business, leading to sustained success.
Increased cash flow allows you the potential to grow and expand your business as soon as the opportunity arises. You don’t have to wait for a bank to approve a loan to make that quick purchase—because you already have the cash you need.
Because we look to the strength of your customers, as well as your company’s financial history, A/R financing is perfect for startups, high growth businesses, or companies that experienced some financial challenges.
When you work with Commercial Funding Inc., you can set it and forget it. We will take care of all the paperwork, processing, and collections. We serve as an extension of your company so you can concentrate on the important aspects of growing your business.