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Accounts Receivable Funding, also known as Factoring


In many situations, Receivables Funding is more appropriate than bank financing, because:

  • Factoring is based only on the accounts receivable. A client's ability to raise cash by Receivables Funding is based on the total accounts receivable, rather than on traditional measures of financial strength and stability.

  • Provides continuing cash flow without the requirement of periodic payments or interim payoffs. New sales continuously create new power to obtain cash, and the business does not have to deal with renewal of loans or worry about maturity dates.

  • Gives a business increased access to cash as sales and receivables increase. There is no ceiling beyond which the factor must stop providing cash. The more sales a business makes, the more cash it can draw. The factor does not concentrate on the business debt/equity ratio to provide funds, as banks do.

  • Offers a dependable, continuing source of cash without the necessity of making separate loan applications.

  • Avoids the necessity of obtaining funds from venture capitalists, who receive an interest in the business and generally have a say in how the business is run.

  • Saves the business owner precious time waiting for a loan board to grant or deny his or her loan. Loan boards' decisions are influenced by many considerations, and the outcome is often unpredictable. With factoring, periodic delays and negotiations are eliminated, allowing the business owner time to do what he or she does best – run the business.

    What are the benefits of Receivables Funding?
  • Receivables funding stimulates cash flow.
  • Receivables funding relies on the strength of a business's customers.
  • Receivables funding is accessible.
  • Receivables funding gets quick results.
  • Receivables funding is flexible.

    Contact our professionals today for a FREE No Obligation Consultation

     

    Please contact us for a free, confidential evaluation toll-free at 866-850-9366, locally at 317-440-4931 or email: info@pathfinderfunding.com. Remember to include your name, phone number, and email when contacting us.

    We are proud to be an outstanding member of the
    American Cash Flow Association®.


     

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