Accounts receivables Loans (A/R financing), sometimes known as an invoice financing line of credit, can be a useful solution for businesses that need more funding that is not available from traditional lenders, but do wish to use all of the services available from a traditional invoice factoring company.
Many companies need additional cash flow to support seasonal demands, growth, business opportunities, or solve a short-term cash need. Accounts receivable loans provide businesses with flexible and immediate cash that will provide the opportunity to grow, restructure, take advantage of supplier discounts, hire additional employees, or even to fund payroll.
With these accounts receivable loan companies, you can access cash without having to give up equity in your business, and it is less restrictive and expensive than equity financing. A/R financing can increase or decrease based on your current business size and needs, allows you to gain administrative support to manage your receivables without additional staff, and gives you access to cash when you request it (based on your eligible accounts receivable).
How Does It Work?
After you invoice your customer for goods or services completed, you provide Express Business Funding with a copy of the invoice and supporting documentation. Express Business Funding may then advance up to 75-85% of the eligible invoice to you, often within 24 hours. Our professional and efficient invoice management team follows up to help ensure that your customer pays according to your invoice terms. Once we receive your customer payment, we’ll release the remaining balance to you, less an administrative fee. And, with our 24/7 web-based reporting, you can check to see who has paid and who has not.
This accounts receivable financing process will free up valuable time and allow you to what you do best, service your customers and generate new business. Receivables management is proven to shorten payment turnaround time, which in turn, ensures better cash flow for your company and reduces interest expense. It also facilitates increased communication with your customers in a positive and professional manner, thus allowing you to stay on top of misplaced or disputed invoices, or keeping payments current.
And, because this form of financing allows you to access more cash as your business grows, or less if you need less, you can increase or decrease the volume of invoices being financed as you feel necessary for your business to thrive. Once the program is in place, it is your funding tool to use as you see fit. There are no firm monthly minimums and you can cancel your agreement with us at any time.