Receivables Finance

What is Accounts Receivable Factoring?

Accounts receivable factoring is a type of business financing that helps companies with cash flow issues. It allows companies to finance their accounts receivable (A/R), which provides immediate funding. A/R factoring is commonly used by small and growing companies that don’t have large cash reserves. In this article, we cover: Do you provide net-30 terms […]

Why Would a Company Sell Its Receivables?

Companies sell their receivables to improve their cash flow. Having good cash flow is essential if you want to run a successful business. You can have a great product/service and excellent profit margins, but your business will suffer if your cash flow is bad. As a matter of fact, profitable companies can also have serious […]

What is a Line of Credit Secured by Accounts Receivable?

Having cash flow problems is a common challenge for companies of all sizes. Fortunately, many cash flow problems can be solved by improving operations, using financing, or combining both options. This article focuses on how to get financing by using your Accounts Receivable (A/R) as collateral. We cover three financial options that use your A/R: […]

The Best Way to Collect Unpaid Invoices

Collecting unpaid invoices is probably one of the most tedious tasks of running a business. However, it’s also the most important one. Getting paid on time is vital to the success of a company. It brings in the money to pay employees, suppliers, rent, and yourself. Consequently, it’s essential to handle collections well from the […]

How to Finance Accounts Receivable and Inventory

Companies that want to finance receivables do so because they can’t afford to wait up to 60 days to get paid by their clients. Financing their receivables allows them to improve cash flow relatively quickly. However, companies that look for inventory financing may be trying to solve two very different problems. On one hand, there […]

How Does Accounts Receivable Financing Work?

Companies that work with commercial clients often have to wait 30 to 60 days before getting paid. This practice is known as offering “net terms” and is common in commercial and government sales, where clients often demand terms as a condition of awarding a contract. Offering terms creates a dilemma for companies that don’t have […]

Selling Accounts Receivable to Obtain Short-Term Funds

Companies run into short-term cash flow problems every so often. It is a common business problem that can happen due to sudden growth, large clients paying slowly or other reasons. The typical approach to solving this problem is to get a loan. However, loans and lines of credit aren’t always the best solution. Qualifying for […]

Selling Accounts Receivable to Finance Your Business

Companies experience cash flow problems at one point or another. These issues are common in small companies and in companies that are growing quickly. Cash flow problems can usually be fixed using the correct type of financing. However, getting a bank loan or a line of credit remains out of reach for many small and […]

How Do Factoring Companies Buy Accounts Receivable?

One of the advantages of invoice factoring is that most transactions are not structured as loans. Instead, the client sells their accounts receivable to the factoring company in exchange for an immediate payment. This article describes how a company sells their invoices to a factor and covers the following: Factoring basics What is the client […]

How To Finance Foreign Receivables

Offering payment terms to foreign clients for your export sales can be a challenge. While many export transactions can be done safely¬†using a letter of credit, large foreign companies often demand payment terms.¬†In a conventional credit sale, the US supplier delivers the product or service to the foreign client and then waits up to 60 […]