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Accounts receivable finance funding

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Accounts receivable finance funding

In the UK obtaining the correct method if financing and funding can be major hurdle for many small and medium sizes businesses.

Please note that businesses are constantly searching for methods to alleviate cash flow problems and with the cost of borrowing on the rise, small and medium sizes business are looking to accounts receivable or factoring as an alternative method for working capital funding.

What is accounts receivable finance funding?

Accounts receivable finance funding is a method where one company purchases a debt or invoice from another company. It refers to the acquisition of accounts receivable, which are discounted in order to allow the buyer to make a profit upon collection of monies owed. Factoring transfers ownership of such accounts to another party that then works vigorously to collect the debt.

The 10 main advantages of accounts receivables financing funding?

  1. Accounts receivables financing funding offer various combinations of money and supportive services when advancing funds.
  2. Accounts receivables financing funding companies often provide their clients with key value added services.
  3. Accounts receivables financing funding companies can prove information on the creditworthiness of their prospective customers domestic and international customers.
  4. Accounts receivables financing funding companies maintain the history of payments by customers (i.e., accounts receivable ledger).
  5. Accounts receivables financing funding companies provide daily management reports on collections.
  6. Accounts receivables financing funding companies can make the actual collection calls.
  7. Accounts receivables financing funding companies can provide an outsourced credit function that both extends the small firms effective addressable marketplace
  8. Accounts receivables financing funding companies can protect businesses from the impact of a bankruptcy or financial difficulty of a major customer.
  9. Accounts receivables financing funding companies eliminate the need and cost for permanent skilled staff found within large firms.
  10. Accounts receivables financing funding companies services insure the entrepreneurs and owners against a major source of a liquidity crises and their equity

As small and mid-size enterprise (SME) suppliers are impacted by the credit crunch, they continue to face difficulty obtaining loans and that’s why accounts receivable financing funding has proved a popular alternative. Please call 0800 597 4757 for advice on how accounts receivable financing funding can help your business.

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