Accounts Receivable Loans

Accounts receivable loans are owed by customers to the business; amounts owed to a business for goods and services sold by the business but not yet collected. A key factor in analyzing the liquidity of a business is the ability to meet current obligations without additional revenues.

Need immediate capital? Sell your receivables to a “Factor” at a slight discount.

Accounts receivable loans (also called Invoice Factoring) are an expedient means of acquiring working capital by selling the invoice (accounts receivable) for a product or service that has been rendered. Despite the advantages of factoring, many businesses do not utilize this financing tool due to a lack of awareness or misconceptions about how it works.

Reasons to Factor:

  • Ability to take advantage of vendor discounts
  • To have funds for payroll and taxes
  • Extend credit to customers on large orders
  • Buy equipment or inventory on demand
  • Obtain a source of working capital
  • Relief from responsibility for collection of no-pay and slow-pay clients
  • Fill more orders
  • Flexible funding program that increases as you increase your sales

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