Any small business owner in need of short-term financing should consider the possibility of accounts receivable financing to fill in the gap. It’s not a loan, so there’s no long-term commitment to monthly payments, but instead, it amounts to selling off an asset at a slight discount to a factoring company. In return, you get the upfront cash you need to maintain cash flow or to take advantage of a business opportunity which has suddenly come up. Here are some of the other advantages of accounts receivable financing.
Benefits of A/R financing
Loans from traditional lenders have been extremely difficult to come by in recent years. In fact, ever since the economic crisis of 2008, the vast majority of loan applicants have been turned down by banks. During that same time, alternative lenders have emerged to help small business owners recover from cash shortages, and to keep their businesses going, through other sources of funding.
It’s currently much easier for a small business owner to apply for and be approved for funding by an alternative lender than it is by a bank. Your business does not even need to have a great credit rating in order to be approved. This is especially true in the case of Accounts Receivable financing, where it matters much more than a business owner’s customers pay promptly.
In addition, when you’re approved for accounts receivable financing, you can get money in your hands much more quickly than would be possible from any traditional lending institution. In a matter of a few days, you could be approved for A/R financing, and have needed funds in your hands, whereas the whole loan process might take as much as two months with a traditional bank.
A/R financing with Norris Commercial Capital
If your small business is in need of immediate funding and you have a large number of invoices each month, accounts receivable financing might be a good source of cash for you. Contact us at Norris Commercial Capital to discuss ways that it might work for you, and to see whether you’d be interested in getting fast cash for your invoices.