Your accounts receivable invoices are an asset of your business. When you allow your customers to pay 30 or 60 days after receipt of their product, it benefits them, but it can put a dent in your cash flow. Use these assets to improve your own working capital situation without taking on more debt. Accounts receivable financing lets you turn your invoices into cash to keep your business growing. Capital Finance Partner offers this type of funding to help your business grow.
Financing receivables is also known as factoring. You sell your invoices to a factor. The factor then collects the invoice, takes out their fee, then returns the remainder of the money collected to your business. It’s more than just an asset sale. The factor checks your customer’s credit and handles collections, freeing you to focus on your business.
Benefits of Financing Receivables or Factoring
- Does not rely on the credit score of your business
- Quick working capital without taking on more debt
- No fixed monthly payments
- Flexibility in financing
Use Funding Where You Need It
With factoring, you have complete control over the funds you receive. It can be used for inventory or payroll. You have the ability to respond to seasonal opportunities, even when you’re waiting on funds you’re owed from your customers. Discuss your needs with one of our certified financial professionals to see how factoring will benefit your business.