Have you ever used account receivable financing? If not, you might like to know about this extremely helpful business technique for raising needed working capital.
Accounts Receivable Financing 101
Accounts receivable, also known as invoice factoring, is a unique style of obtaining the cash your firm may need. As long as you have sales – even future sales – you may qualify for immediate cash! This is the way it works:
• You get an immediate infusion of cash based on your sales invoices.
• You receive a percentage, generally close to 100%, of the actual value of your outstanding sales.
• You outsource the collection of money owed directly to the financing agent so you are free to focus on your business.
• Depending upon your needs and magnitude of sales, you can sell anywhere from a few percent to 100% of your receivables.
Utility During Seasonal Periods
During seasonal lows or during a pandemic, your business may be entering a slow revenue period. Your customers may be slow to place orders. Additionally, your employees may be a little less perky than usual. If a big blizzard or something equally annoying hits, your cash flow may dry up. It’s times like these that are tailor-made for accounts receivable financing.
Plan Ahead For Cash-Flow Speed Bumps
It’s possible that your cash flow may have been temporarily stretched thin when you used accounts receivable financing. Therefore, once your cash influx is received, take the steps to keep your business running in the black.
This may be a good time to motivate your employees. Keep them happy and contributing to the bottom line. Also, consider how you can attract new customers or enter into a new market niche.
When you partner with Adventure Capital Group for any type of financing need, you’ll be working with the best in the business. Everything about their lending programs is completely transparent. You’ll always know the exact costs of any financing and never be charged any early repayment fees. Moreover, there will be no “surprise” costs to add to your cost of business.