Account Receivables Financing - Save Your Small Size Business


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Finding right amount of financing during odd times is a real difficult job for small business owners. Business owners who run small businesses have to face this type of situation often.(

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Account Receivables Financing - Save Your Small Size Business

  1. 1. Account Receivables Financing - Save Your SmallSize Business
  2. 2. Business Owners whoRun Small BusinessesFinding right amount offinancing during odd times is areal difficult job for smallbusiness owners. Businessowners who run smallbusinesses have to face this typeof situation often. Applying forloans and getting the amountsanctioned requires lot of timeand paperwork involvement.
  3. 3. Also, loans are not offered forevery possible reason andsituation. There are steps thathave to be covered and takeninto account so that the chancesof getting your loan improve.This is the reason why most ofthe small business ownersdecide on account receivablesfinancing option.
  4. 4. Increasing Popularity ofFactoring CompaniesThe increasing popularity of factoringcompanies in the corporate world isremarkable these days. One of themain reasons why more and morebusinesses are choosing this financingoption is the quickness with whichthey receive fund. They are morevulnerable to cash flow challenges andso need immediate money so that theycarry on with the production unit oftheir firms. The factoring companybuys factor receivables and offermoney against it.
  5. 5. Although the normal trend is tooffer 70% to 80% of the moneyimmediately and the rest after theyreceive the money from yourclient, most companies are open fornegotiation and make changes intheir working pattern consideringthe situation. They deduct theirprocessing fee and charges from theremaining amount. All these termsdepend on the company and theprinciples on which it works.
  6. 6. However, the best thing isthat when you opt for accountreceivables financing optionyou are in a position toconcentrate on the businessgrowth and developmentactivities as the problem offinance gets covered. With thetimely financial resource youcan even consider the optionof expanding your business.The financing method iseasier and quicker and doesnot affect the credit score asthere is no declaration of themoney as loan or credit in thebalance sheet of yourcompany.
  7. 7. It is better to research and findreliable and recommendedfactoring companies to sell factorreceivables. After all yourrelationship with the client is veryimportant for future and thefactoring company should not beharsh or insensitive when it comesto money recovery from your client.
  8. 8. Although selling factor receivables is a good option for revenue generation, you shouldweigh the pros and cons and choose the right company and the right program that fits inyour working capital needs. Remember, the factoring company is just giving you themoney that you would be receiving after a certain period of time. Phone: 877-545-1311 Fax: 954-525-1366 Website :