Accounts Receivable Financing For Growing Businesses

[Raja Maan]

Accounts Receivable Financing For Growing Businesses

For growth-focused businesses, securing capital to get to the next stage of development often means taking on extra debt. Unfortunately, traditional loans, and all they entail, can do more to hinder growth than to help it along. However, there are two alternatives to traditional loans that give businesses the capital they need from within, by focusing on accounts receivable.

Asset Based Lines Of Credit

Asset based financing is a revolving line of credit structured around property owned by a business. “Property” in this case means equipment, inventory, and accounts receivable. Unlike traditional loans, asset based lines of credit can be drawn from as needed, as opposed to taking one lump sum of money. As a business grows and accounts receivable rise, the asset based lines of credit can be reconfigured with higher spending limits. Asset based lines of credit are a great method for leveraging accounts receivable for long-term growth.

Invoice Factoring For Growth Capital

One of the major issues keeping small businesses from growing is the lag in staggered customer payments. Invoice factoring is a method of monetizing accounts receivable to give business owners immediate access to the revenue they are owed. Open customer invoices are submitted through factoring services, and are converted to capital within 24 hours. This is a debt-free solution which not only allows businesses to clear up a backlog of open invoices that have aging periods of 30 days or longer, but it also gives businesses the ability to submit invoices as they are generated. Invoice factoring removes the burden of tracking down payments from by providing a centralized source of revenue to streamline accounts receivable.

Getting Growth Capital From Within

Accounts receivable financing options are great for accruing growth capital without having to resort to assuming debt through traditional loans. Small businesses can leverage receivables to structure flexible financing solutions to ensure long-term growth and success. Biz Com Loans is committed to helping small and new business owners get the capital necessary to thrive in a very competitive marketplace. We can provide asset based lines of credit, invoice factoring, as well as other financing solutions structured around your business needs. If you would like to learn more about how we can help, contact our offices today. Our team will work with you directly to create a tailored plan to help you reach the next milestone.