Accounts Receivable Financing: Eliminating Delays In Accounting

Accounts receivable financing is a means of getting working capital and positioning your business for growth. There are specific programs for leveraging past, present, and future receivables without needing to take on debt or rely on traditional bank loans.

Accounts Receivable Financing For Existing Invoices

When it comes to accounts receivable financing for present and past invoices, most businesses use factoring services. Factoring allows business owners to exchange current and backlogged invoices for immediate cash. Factoring services ensure a steady cash flow, while simultaneously eliminating the need for staggered payment schedules and collections. Additionally, this form of accounts receivable financing is sidesteps the need for loans. Since factoring is structured around existing receivables, there is no debt placed on the balance sheets, and businesses can see an influx of capital within 24 hours. Accounting also becomes much easier, because capital is much more centralized, so businesses do not have to track payments and aging periods across multiple client accounts.

Accounts Receivable Financing For Growth

Accounts receivable financing can also be used by business owners to position themselves for growth. Purchase order financing, which deals in future receivables, is a zero debt solution for large and unexpected orders. Instead of turning down large orders and leaving money on the table, businesses can use purchase order financing to get the working capital needed to deliver on the requests, without placing a strain on regular operations. Once the order is completed, the purchase order financing is rolled into the customer’s invoice. When the customer pays, they not only repay the purchase order financing, but the amount left over goes towards business growth. This is perhaps the most powerful form of accounts receivable financing for growth-focused businesses. Even though the receivables do not yet exist, purchase order financing is debt-free and can be arranged quickly, in order to level the playing field with your competitors and get a stronger foothold in your industry.

Who Uses Accounts Receivable Financing?

Between factoring and purchase order financing, every industry in the country uses accounts receivable financing. From trucking fleets to medical practices, manufacturers, caterers, event planners, and more, AR financing is helping to ensure a healthy cash flow and growth for the lifetime of their businesses.

Put Your Business In The Fast Lane

At BG Capital Funding Group, we specialize in accounts receivable solutions for businesses of all sizes. Contact our offices today to get started.


Related Posts