Accounts Receivable Financing:
Your Guide To Business Funding

Accounts receivable financing is becoming a popular funding option for many businesses looking to raise capital to run their business operations.


In addition, lots of companies are finding it more difficult to get approved at banks and other traditional institutions for due to their tighter credit norms.


Companies that lack good credit scores may also find less possibility of availing of business loan facilities as well.


Hence, in such situations to avoid cash crunch situations, it may be important for enterprises to look at other financing alternatives such as accounts receivable factoring/financing.

What Is Accounts Receivable Financing?

Accounts receivable factoring can be a good method for companies to leverage their business invoices to get access to quick cash that can help in managing their operating costs.


Thus, a company or an enterprise can offer to sell its invoices to a factoring company at discounted rates. Most of these factoring companies require the invoices to be signed by the customer along with any other related information.


However, the factoring companies will evaluate the potential risks involved and then take a final decision before accepting the invoices.


Typically, factoring companies will pay the companies the face amount after deducting the discount rate that the company charges for their services. Then, the factoring company sends a notification to your customers to pay them directly instead of your company.


In this manner, companies can get cash advances from the factoring companies within one week or sometimes within 24 hours, depending upon the policies of the private lending company. In short, companies might get up to 70%-90% in cash advances from the factoring company.

Some Benefits Of Using Accounts Receivable Financing For Your Business

Accounts receivable financing can be an attractive option for companies looking to find some good funding options that enables them to meet all their immediate business obligations.


It provides greater flexibility to small, medium, and large-sized enterprises in managing their finances in a more efficient manner. Plus, it assists companies to better manage their business operations by investing in their working capital requirements, including purchasing necessary equipment or machinery.


It also helps them to clear off their existing debts and manage their resources. In addition, these businesses may use this method of financing to pay off employee salaries or invest them in marketing or promotional purposes. 


Accounts receivable factoring is a more convenient method for companies that need to have access to quick business funds. It is possible to obtain funds in a fast and efficient manner with less cumbersome procedures involved when compared to conventional sources.

Accounts Receivable Financing/Factoring Options

Many companies that might not have access to funds to meet their working capital requirements can apply to factoring companies that can lend them cash advances in return for their invoices.


Typically, these factoring companies require some kind of legal agreement, which can last from six months up to one year or longer. Some factoring companies also have shorter contractual periods on a monthly basis, where the fee charged can be a bit higher.


Depending on the factoring company, there are different kinds of agreements-one with recourse and one without recourse. 


In the former, in case the customer defaults on making the payment, the company has to repay the entire sum out of its margins. However, in case of the latter, the factoring company bears the risk of a possible default, if the customer fails to make the payment.


Hence, every company may have to decide the best form of factoring suited for their business and choose the best option. 


Business Funding Advisors is a leading commercial loan consulting firm, offering commercial loans via our vast network of private investors, providing commercial loans to businesses looking to find the best possible funding options. We offer different types of commercial loans, ranging from bridge loans, merchant cash advances, mezzanine financing to construction loans to commercial establishments. 


To apply for accounts receivable financing, scroll down to our quick loan application below. If you're applying for a merchant cash advance, fill out our application here.


QUICK COMMERCIAL LOAN APPLICATION


We provide FREE, no obligation evaluations, with no upfront costs, or expensive fees for approval to our private lender programs.


- Minimum loan amounts (for commercial building projects): $100K with no maximum.


(Loans approved for commercial only, not single-family residential projects.)


- No pre-payment penalties on programs offered.


We will respond to your loan application within 24 hours!


Commercial Loan App

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Return to Business Loans from Accounts Receivable Financing


Accounts receivable financing is available in:


Merchant Cash Advance and

Working Capital Loan Programs

are available in:


Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming


Commercial loans are available in:


Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware,

 Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming


COMMERCIAL LOAN PROGRAM HIGHLIGHTS


Commercial Real Estate Programs

· Lending Area: Nationwide & International


· Loan Size: $100,000-no maximum


· Rates as low as 3.74%

· up to 90% LTV


APPLY HERE

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Commercial Development & Construction Loans

· National & International


· $2MM-$50MM


· Interest Rate: 5-9% Fixed (1% for churches)


· Amortization: up to 25 years


· Zero fees


· Points: Up to 3%, paid at closing


· Term: 5 yrs; also can structure a construction to permanent loan with interest only during draw down periods.


APPLY HERE

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Hard Money Loans Rates and Criteria:

· Loan Size: $100K-$100MM


· Lending Area: National & International


· Collateral: We lend to mainly on commercial real estate, including raw land and development projects


· Interest Rates: 7-14% (rates depend on collateral)


· Amortization: Interest only


· LTV: Up to 80%

· Origination Fee: 1-4%

· Closing time: 1 week to 30 Days


APPLY HERE

___________________


Bridge Loans

· Loan Size: $1MM-$15MM


· LTV: Up to 75%


· Rate: 5-7%


· Term: 1-3 years, Interest Only


· Property Types: Office, Retail, Industrial, Multi-Family, Manufactured Housing, Condominiums, Self Storage, Special Use, Hospitality, Assisted Living/Congregate


APPLY HERE

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Unsecured Business Lines of Credit

· $25,000-$100,000 (start up businesses with no established revenue and business owner with good credit)


· $100,000-$500,000 (established businesses w/ revenue of $1MM or more; no collateral if good credit and financials)


· 0% intro rates on business credit card solutions, to 1-5% over prime for large credit lines.


· No "subprime" unsecured lines


APPLY HERE

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Click Here To Apply for A Business Cash Advance or Working Capital Loan


Bank ACH or Credit Cards


90% Approval Rates (for most industries)


- Minimum 4 months in business and $8,000 avg. monthly revenue


- No Collateral Requirements; Bad credit is OK


- One Week Funding


- Borrow $5K-$500K in as little as 24 hrs


- Short, simple loan process


- Streamlined underwriting

___________________


Restaurant-Retail, 
Small Business Loan Program


  • · Unsecured Loans up to $1,000,000 per location

  • · No Collateral Required

  • · Minimum Annual Sales: $150,000

  • · Minimum: 550 FICO

  • · Must be in business at least 1 month to document sales

  • · Loan amounts below $150,000 require NO tax returns or financial statements


APPLY HERE

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Customer Finance Programs for Businesses

· Can finance your customers down to a 500 FICO;

can finance your turndowns from your current credit provider


· Instant online credit processing and approval


· E-signature capabilities


· Can purchase or collect bad debt portfolios


· Industries include: Medical, Dental, Jewelry Retail, Furniture, Memberships, Private school tuition, Security/Alarms, Vocational Schools, Travel, etc.


APPLY HERE

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Click Here to Apply for

A Private Lender Commercial Loan


- Zero upfront costs, zero fees for approval to our programs.


- Minimum loan amounts: $100K for commercial building projects, with no maximums.


- No pre-payment penalties on programs offered.

_________________


Click Here To Apply for A Merchant Cash Advance or Working Capital Loan


- Bank ACH or Credit Cards


- 90% Approval Rates (for most industries)


- Minimum 4 months in business and $8,000 avg. monthly revenue


- No Collateral Requirements; Bad credit is OK


- One Week Funding


- Borrow $5K-$500K in as little as 24 hrs


- Short, simple loan process


- Streamlined underwriting

_________________________


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