If you need money for your business or brand, account receivable financing may be a viable option. In this instance, you would sell outstanding invoices to a third party, or a ‘factor’. The factor then collects payment on these invoices to glean their payment in return. After they take their payment and pertinent fees, you receive the remaining balance.

Consider the following advantages of accounts receivable financing:

Funds Fast

Perhaps the biggest perk of account receivable financing is the quick turnaround time. This is an excellent option for getting the money and capital that you need, fast- often within 24 hours.

Easier Approval

Since your factor will be obtaining the payments from your customers and patrons, your credit rating and history are less of an issue. Accounts receivable financing might be appealing to individuals and companies with less than stellar credit. This factoring process does, however, take the credit history of your clients and consumers into account- but more on that later!

Outsource Options

Another distinct advantage of accounts receivable financing is that it takes a lot of the payment collections for your company off your plate. That is, the task of collecting monies from your customers is now taken on by the factor- which alleviates a lot of administrative work for you and your team.

Working Capital

By using accounts receivable financing, you are freeing up money and working capital for other things. Whether it is for operation costs or investments in equipment and supplies that can help grow your business, this alternative funding approach can increase your working capital.

Remember that for accounts receivable financing to be successful, it is contingent on your customers, clients, and patrons. The credit and history of your buyers is a pertinent issue when being evaluated for this type of alternative funding source and it can impact the factoring fees that you pay.

Want to learn more about accounts receivable financing for your business or brand? Talk to the professionals at Oryx Capital Solutions and learn more about alternative funding solutions for your company. Call or visit today.