How does accounts receivable funding work?
Simply put, accounts receivable funding is the purchase of accounts receivable from a business at a discount. It is designed for businesses that need money immediately, and can’t afford to wait 30, 60, or 90 days for a customer to pay. In most cases, either the business owner can’t meet his cash demand (because, for example, his customers are slow to pay or income is slow due to a seasonal slowdown), or his business is growing so rapidly that its cash flow can’t keep up with its growth.
What type of business can take advantage of this alternative funding source?
Any business that generates an invoice and delivers a verifiable product or service qualifies.
Must I agree to finance a minimum volume of future receivables?
No. Finance one invoice or as many as you need to meet your cash flow needs. Stop or continue as needed.
Can a business with a history of bad credit (or a new business with no credit) qualify?
Yes. Another benefit of accounts receivable funding is that it depends on your customers’ creditworthiness, not yours. (And, as part of our service, we do the research to assess your customer’s creditworthiness for you.)
Can my business qualify if we already have existing credit lines, SBA loans or are a debtor in possession (Chapter 11)?
Yes. Our credit line complements any loan you may have or are seeking. We work with your existing lenders to enable you to access additional funding.