Get Your Money Fast With AR Financing
No man is an island. In order for your small business to see success, you need to rely on your employees. To be able to trust in the men and women you’ve hired, you have to pay them on time. When your company is strapped for cash, you don’t want payroll to suffer. Luckily, there are a couple of useful and creative options you can explore to make sure you have cash when you need it.
Accounts receivable financing, for example, brings forth a very interesting solution.
The Basics
Essentially, this type of financing involves a company purchasing eligible accounts receivables from you. Usually, the companies will purchase the invoices that have yet to see payment and take on the responsibility of collecting the total. You will receive cash for the invoices right away, allowing you the opportunity to cover any expenses you have without having to wait around for payments from late parties.
Avoid Excessive Debt
Accounts receivable financing can be beneficial for a number of reasons. First, this is a financing option that is not going to set you back. Often, business owners who are strapped for cash will turn to loans to help cover any financial gaps. While loans can provide a solution, this form of financing also puts the borrower further into debt. You may wind up hurting yourself financially when you take out more money than you can afford to pay back in a timely manner.
When you opt to finance your accounts receivables, you are not putting yourself into debt. Instead, you are being given the money you are already owed by customers. The company that purchases your receivables will pay you a percentage of the total up front, collect the debt from the customers, and then pay you the difference minus a fee for the service.
No More Collection Struggles
Another reason accounts receivable financing can benefit your small business is because it takes the burden of collecting debts off your shoulders. Unpaid debts can hold back your entire business. Without incoming cash from those you have provided a service to, you can’t cover important expenses like payroll. Unfortunately, it can be very difficult to collect a debt from customers. By turning to professionals with experience collecting unpaid invoices, you have a better chance of seeing the debt paid in a quick, efficient manner.
Avoid Future Mistakes
By taking time to explore your options with accounts receivable financing, you will be able to cover your expenses without going into debt. This will help you better plan for your financial future and avoid future mistakes along the way. Contact us today with any questions about financing or lending.
