ACCOUNTS RECEIVABLE FINANCING

Accounts receivable financing provides cash
funding on the strength of a company’s outstanding
invoices. Instead of buying accounts, lenders use
invoices as collateral for the loan. Besides benefiting a
business in debt, accounts receivable financiers can
assume greater risks than traditional lenders, and will
also lend to new and vibrant businesses that demonstrate
real potential. An accounts receivable lender
will also handle other aspects of the account, including
collections and deposits, freeing the company to
focus on other areas of productivity.
However, risks
are involved, and agreements are typically lengthy
and steeped in legal lingo. Before considering this
type of financing, sound financial and legal advice
should be secured to make sure that it is appropriate
for your company.