April 3, 2023
Do professional services companies benefit from Accounts Receivable Financing?
Yes! Many professional organizations, like IT consulting, engineering, and technical service companies, invoice their customers for services performed over the course of the month or a discrete project. Each month can contain multiple pay periods, so a single invoice that is paid within 45 days can easily encompass 4-6 pay…
March 1, 2023
What types of industries factor?
Accounts receivable financing, or factoring, is a great solution for any company that is business-to-business oriented, has credit-worthy accounts receivable, and wants better control of their cash flow. It also fits almost any industry where work is performed by badged employees and where that work does not involve insurance claims. …
February 21, 2023
What is Accounts Receivable Financing?
Traditionally known as “Factoring,” Accounts Receivable (AR) Financing is a tool for accelerating AR into cash. The mechanics are simple: Our B2B clients invoice their customers as usual and send us an invoice copy. If the invoice is good, due, and payable, we may* purchase the invoice and make funds available the next business day. Imagine having a portion of your accounts receivable in your bank account the next…
How does Accounts Receivable Financing differ from lending?
Commercial banks offer a variety of funding options for business, but mostly short-term and long-term debt, and then not all companies will qualify. A great alternative is accounts receivable financing, or factoring, a tool for improving cash flow through the purchase of credit-worthy, business-to-business invoices. Accounts receivable are short-term assets…