Introduction
Accounts receivable financing is a way to help your business get the money
it needs to grow. It's also a way to help you pay off those bills that have
been piling up.
Accounts receivable financing can give your business access to cash faster
than any other alternative. It helps you buy equipment, expand into new markets
and hire more employees...all without having to wait for customers to pay their
bills!
What is Accounts Receivable Financing?
Accounts receivable financing is a form of financing that allows small
businesses to get paid faster. This can help them manage their cash flow and
keep up with payments on other loans, like credit lines or mortgages.
For example, imagine you own a coffee shop in Seattle and you sell your
coffee beans wholesale to several convenience stores around town. You want to
buy a new espresso machine for your business but the bank won’t lend you enough
money without collateral — so instead of taking out another loan, you borrow
against future sales by using accounts receivable financing from Capital One
Business Credit (COBC).
Accounts
receivable financing is an asset-based lending product where a company
receives capital based on its outstanding invoices from customers or clients as
security against default risk. In other words: Your lender will advance funds
based on your ability to collect money owed by your customers or clients—not
just on what assets you already own—because they know it’s less risky for them
than investing directly in inventory or equipment purchases!
Working Capital Growth
As your company grows and expands, your business will need more working
capital. Receivables
financing can help you meet the demands of the marketplace by providing a
way to get the cash you need when you need it.
The benefits of accounts receivable financing include:
·
Increased cash flow: With a line of credit, you
can access funds anytime without having to wait for payment on invoices. This
gives you more flexibility in terms of how much inventory and other assets are
on hand.
·
Increased revenue: If customers pay their
accounts on time, this helps improve profits because there is no longer a gap
between income and expenses which means less risk for businesses that would
otherwise have trouble covering their monthly costs at the end of each month
(this includes paying employees).
Increased Buying Power
You’re a business owner. You know that your success depends on the amount of
inventory you can buy and sell. With accounts receivable financing, you can
increase your buying power by buying more inventory and paying vendors faster.
Your suppliers will love it when they see their invoices paid early, because
this means they can get back to work with less time spent waiting for payment.
With AR financing, small businesses are able to take advantage of special
offers from vendors who offer deep discounts on products or services in
exchange for quick payments. This is especially important during economic
downturns when companies may be struggling to stay afloat.
Is Accounts Receivable Financing Right for You?
Accounts receivable financing is a great way to get the money you need to
grow your business when the traditional sources of funding have dried up. It’s
flexible, no-hassle and can be customized to meet your exact needs.
Is accounts receivable financing right for you? If you have an excellent
credit rating, then yes! We can help you get started with an application as
soon as today.
Conclusion
If you’re looking for a way to improve your cash flow and grow your
business, accounts receivable financing is an excellent option. With more money
in the bank and increased buying power, you can do more of what you love—and
expand your business into new areas that will keep it thriving for years to
come!
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