Accounts Receivable Funding
If you need accounts receivable funding info, you have come to the right place. ICC provides funding for account receivable invoices at some of the lowest rates around. What this means is that you do not need to take out a bank loan to keep your business operations up and running. Accounts receivable funding is a process where a business can factor or, sell, their invoices at a discount in return for immediate cash flow. Unlike a bank loan or a line of credit, factored invoices allow you to keep your business operational and funded using the money that is already owed to you. Although you need to pay a small percentage based fee for the service, factoring invoices helps businesses pay their employees, order necessary equipment, and pay the bills without having to wait for customers to pay off their debts.
Whereas taking out a loan in a bank can be problematic in this economy, especially if your credit is not great, factoring invoices helps you get cash flow quick using just the money that you have already earned and is owed to you by customers. If you run an invoice-based business, you are likely eligible for this service.
Accounts Receivable Funding Information
Unlike discounting invoices, which is when businesses get loans using their outstanding invoices as collateral and pay only interest to the lender, invoice factoring is essentially more of a sale than a loan. The rates for factoring your invoices also tend to be lower than interest rates for invoice discounting. The biggest difference between “selling invoices” and factoring invoices is that your customers will have a pre-determined amount of time, usually around 90 days, to pay the debt or it reverts back to you.
Since you are just paying a small fee to a factoring company to fund your accounts based on the money that is already owed to you, invoice factoring or accounts receivable funding is an attractive option to many businesses, especially those that are not eligible for a bank loan or decent interest rates.
Funding for Accounts Receivable Video
This video describes the difference between borrowing and factoring, or accounts receivable funding. Have you thought about borrowing money against your accounts receivable lately? Banks have proven to be tighter with funds than they are now. It doesn’t mean that banks no longer offer funding, but if your company’s not profitable right now, you can bet they’re not going to make it easy.
With factoring companies, they don’t care if you’re making money or if you’re profitable. Its irrelevant. They also don’t care what shape your balance sheet is in. Companies like Interstate Capital can get approvals in minutes, not weeks. Accounts Receivable Funding happens in a few days, not a few months. In fact, most companies can receive an instant on-line rate proposal right from our web site at InterstateCapital.com.
Applying Online for Funding
From there, you can apply on-line and get an instant approval within an hour. In addition to providing far greater availability against your accounts receivable, Interstate Capital also acts as your credit department, assisting you to establish prudent credit limits for your customers.
We provide 24-7 online access for credit inquiries and instant approval on tens of thousands of companies.
Accounts Receivables: Collections
In addition to providing credit and funding services, Interstate Capital provides another time and money saving service that banks don’t offer. That is a professional collection department. Automated statements are sent to your clients to assist them in paying you more quickly. We also make follow-up phone calls to obtain payment status.
In short, Interstate Capital advances more money, help you to reduce credit losses, and save you time and money by collecting your payments for you. Accounts Receivable Funding has helped thousands of businesses with their cash flow needs.