Accounts Receivable Finance: How Can A Business Use Accounts Receivable As A Funding Source

Accounts receivable finance options can offer solutions to a number of business funding needs. They can help cover cash gaps or as working capital. In fact, they are a great way to get money for your business without worrying about credit score.

An Accounts Receivable Finance Option Can Be A Superior Solution for Cash Gaps

Many businesses find themselves cash strapped when their own customers are slow paying. Account receivable financing is a good solution. This is secured financing that uses your accounts receivable as security, or collateral.

Any business that carries receivables that turn over regularly can benefit. Old receivables aren’t worth as much. Think about it. If you have been waiting for payment for several months, you have a collection problem. Lenders aren’t as likely to lend against receivables that aren’t paid regularly.

Yet, if you regularly collect within 30 – 90 days, you only need cash to cover that gap. Accounts receivable financing from Credit Suite may be the perfect option.

An Accounts Receivables Finance Option Can Work Even With Bad Credit

Typically, monthly rates run between 1.25% and 5%. Loan amounts can go as high as $20,000,000. To qualify, you will not need financials or good credit.

You will need a time in business of at least 12 months. The lender will review existing receivables.  Consequently, they will also consider the companies that your receivables are with. Hopefully, the companies who owe you have a good history of paying their debts. If so, your approval chances will increase substantially.

Why Credit Doesn’t Matter

Lenders are not looking for good credit from your business. Instead, they need to see that those who owe you will pay. Of course, that is because they get their money when your customer pays the invoice. Accounts receivable finance options typically offer up to 80% of the total of receivables. When your customer pays, you get the balance, usually 20%, less a fee.

Borrowers can be approved with a personal credit score as low as 500.  That’s even with recent derogatory items or major collections on the credit report.

Fast Access to Cash

You can get initial approval in 3 weeks or less. Once approval is financial, you may have funds in as little as 24 hours.

You can operate your business as if you get payment much sooner than your customers actually pay. Better yet, you can do so even while offering net terms to your clients.  Of course, that helps you grow and run your business more successfully

Required Documentation

Required documentations include:

  • Your application
  • 3 Months of business bank statements
  • Your business debt schedule
  • And your accounts receivable report

Benefits of Accounts Receivable Finance Options

Your business gets money without having to rack up expensive debts.   Furthermore, the process is easy and fast. With more cash on hand, your business will pay its own bills faster. In turn, your business credit score may improve.

Both you and your customers benefit. You collect the majority amount of outstanding invoices. In addition, you can offer your clients far more favorable payment terms directly from your business. It’s a win for everyone!

Start the Accounts Receivable Financing Process with Credit Suite

There is a 4-step process that is easy to complete. First, fill out the  form for a one on one consultation with a representative. Then, submit your application. After that, there will be a soft pull on your credit report. Then, there is an easy account receivables review for approval. You can prequalify in as little as 24 hours. What are you waiting for? Get yours free Business Finance Assessment today!

The post Accounts Receivable Finance: How Can A Business Use Accounts Receivable As A Funding Source appeared first on Credit Suite.

Service Credit Cards: A Valuable Source Of Funding

Organization Credit Cards: A Valuable Source Of Funding

One of the secrets to service success exists in enough resources: you require it to obtain with the ever-changing times of your little service. A current study revealed that 90% of tiny service proprietors make use of a company credit score card.

Accessibility to Funding
When beginning a brand-new organization, locating resources of financing can be an obstacle. A company charge card permits you very easy accessibility to a credit line. The credit line for service bank card is normally greater than individual cards.

Lots of service debt cards, consisting of the Platinum Business Credit Card from American Express and also the Chase Platinum Visa ® Business Card, supply 0% APR initial prices. This can aid start your organization.

Capital Solutions
Offering first financing, an organization credit rating card enables you to prolong money circulation. As you obtain cash money from customers as well as clients, you can pay off the credit score card equilibrium

With a company debt card, unlike a company one, you are directly accountable for paying off the financial debt. By establishing as well as tracking acquisitions up a repayment routine, you can prevent running right into debt card financial debt.

Bonus Bonuses
Service credit scores cards provide tiny firms a riches of advantages. As your company expands, you can include staff member cards.

An organization charge card will certainly aid you track expenditures. Annual as well as regular monthly declarations demonstrate how much you have actually invested, as well as some will certainly also classify products. This allows you to swiftly examine exactly how funds are being made use of.

Numerous organization bank card supply benefits programs. You might wish to get 5% money back on acquisitions, or gather factors that can be retrieved for traveling rewards and also various other incentives.

As you think about which charge card will certainly function best for you, check out your service and also its requirements. If you take a trip often, a benefits program with airline company miles is excellent. And also if you merely desire a lot more money accessible, seek a cash money back program.

Whatever you are looking for, opportunities are you will certainly be able to locate it in an organization credit report card. Sight your company debt card as one of the economic devices for your service.

One of the tricks to company success exists in enough funding: you require it to obtain via the ever-changing times of your little organization. A current study revealed that 90% of tiny company proprietors utilize a company credit scores card. The debt limitation for company credit rating cards is generally greater than individual cards.

Numerous organization debt cards, consisting of the Platinum Business Credit Card from American Express as well as the Chase Platinum Visa ® Business Card, provide 0% APR initial prices. Sight your company credit history card as one of the economic devices for your service.

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