The act of borrowing money against outstanding business invoices is referred to as accounts receivable financing (ARF.) There are two ways to accomplish this. One is by factoring, which means selling the invoices your company has. The other one is by taking out a loan and putting your business invoices up as collateral. AR financing allows you to earn cash from unpaid invoices.
There are a few easy steps involved in the process of obtaining AR financing. The first step is to apply online, a task that will only take a few minutes to complete. The second step in the process is to send client invoices in; this can be done at any time of the day or night, by signing into a client portal. Afterward, all you have to do is wait for your money, which you may receive as soon as the next day.
You will find quite a few benefits to using ARF. One of them is the ability to have working capital. If you can’t afford to wait anywhere from 30 to 90 days to receive your money, this is a viable alternative to doing so. In many cases, this is a better way to fund your business than taking a loan from a bank is. If your business is new, getting a bank loan may be difficult, if not impossible. Obtaining an ARF is often a better decision for new business owners to make. Not only does it quickly get you the cash you need, but it can also be a great way to build your business’s credit score.
While you will incur fees associated with an ARF they are often lower than the fees other startup funding options may include. This means less stress for you and more money for your business. With this increased flow of cash pouring into your business, it is easier to help it further grow and develop. In addition, working with an ARF company such as Park Cedar Commercial Lending means that you don’t have to take care of tasks like paperwork and collections. If you are interested in obtaining ARF for your business, please contact Park Cedar.