Account receivable financing is essentially asset based lending. It is an ideal form of lending for companies that don’t have inventory. A receivable-based line of credit is ideal for maximizing cash flow and increases revenue. Accounts receivable financing is a good alternative to a traditional business loan. Many businesses turn to this form of lending to have access to reliable cash flow and keep business up and running while on schedule. Many businesses suffer from cash flow constraints due to a variety of reasons, and can use an accounts receivable loan to pay their employees, pay off debts, purchase inventory or equipment, or to increase their overall sales. Here are 3 things that Fast and Easy Funds believes you should know about accounts receivable loans and how it can help your business flourish.
- Accounts receivable financing is not a loan. This form of financing does not put your business in debt or require you to sell you receivables to a third party. Accounts receivable from Fast and Easy Funds gives you immediate funds and is far less expensive than factoring.
- Fast results. When you apply for accounts receivable financing, the process only takes a fraction of the time that a traditional bank loan would take. Once the application is approved your business should receive funds almost immediately.
- You will stay in complete control. With accounts receivable you maintain invoicing and collection calls. The accounts receivable line of credit is not a factoring line that requires you to sell receivables to a third party.
A Fast and Easy accounts receivable loan is for clients to accelerate their cash flow by financing their receivables as collateral in exchange for a cash advance, which makes this loan type ideal when you are looking to expand your staffing agency, since you have no tangible inventory to use as collateral. You will be able to receive cash in advance typically within 30, 60, or 90 days, once you provide the needed capital to meet the operational overhead.
For many staffing agency owners, cash flow problems are chronic and can be a continual threat in the survival of the staffing agency. This holds true for many rapidly growing agencies. Most commercial clients will be more than happy to use your staffing agency, but they tend to take their time paying their invoices. Delaying payments to staffing vendors is their own way to deal with their own cash flow issues. In the meantime, this can leave your staffing agency on the hook for salaries, tax benefits, and overhead.
Fast and Easy Funds offers the solution to alleviate the lapse in payments to your staffing agency. The Fast and Easy accounts receivable loan will allow you to borrow 85-90% of your accounts receivables that are less than 90 days old, giving you stable cash flow, the funds to meet your current obligations, as well as the ability to finance the staffing of new clients. In turn, you can use this money to hire temporary staffing for new perspective clients, which seems to be the obvious choice to meet personal needs both now and in the future.
Fast and Easy Funds offers fast approvals on account receivable loans and the option to not notify your clients, apply online today!