AR Financing: Putting An End To Delayed Payments
Small businesses are constantly trying to maintain a healthy cash flow. However, if the business issues invoices with aging periods of 30 days or longer, the staggered payments from customers can cause a financial strain. Instead of taking out bank loans to introduce working capital into the cash flow, many business owners are using AR financing.
What Is AR Financing?
AR financing, or accounts receivable financing, is a means of capitalizing unpaid invoices to get revenue without having to wait on customers to remit payments. AR financing converts open invoices to working capital within 24 hours. Instead of waiting 30, 60, 90, or 120 days to see payment from customers with unsettled accounts, AR financing provides immediate cash for invoices, and customers just make payments to the organization providing the service.
There Is No Debt Involved
One of the biggest advantages of using accounts receivable financing over traditional loans is that there is no debt placed on the balance sheets. AR financing is designed to provide businesses with a steady and healthy cash flow, without debt, and without compromising business credit ratings.
No More Tracking Multiple Accounts
Accounts receivable financing also gives businesses a centralized source of revenue. Instead of tracking staggered payments across multiple customer accounts, which costs time and accounting resources, businesses can focus on growth and internal projects.
Say Good-Bye To Collection Services
When customers are late on payments, handing their accounts over to collection services actually increases the time before a business sees revenue. AR financing heads those issues off at the pass. Businesses are able to clear up any existing unpaid customer accounts, and they can immediately submit invoices as they are generated for working capital.
Growing With Your Business
Accounts receivable financing gives businesses the ability to improve their cash flow as sales increase. This is a great solution for businesses that want to position themselves for growth, but do not want to deal with the bureaucracy or debt that comes with traditional bank loans.
Get The Payments Your Business Has Been Waiting For
At BG Capital Funding Group, we pride ourselves in offering the best AR financing solutions to both local businesses and across the country. If you would like to learn more about accounts receivable financing, or any of our other working capital solutions, contact our offices today.