Many businesses wait long periods of time for payment; some invoices may not be paid for months. For some companies, this is fine. But when running a business, unexpected events can transpire that require funds immediately. Things go wrong, equipment breaks down, new employees need to be paid, and all of this requires working capital. If you have encountered a problem like this and you cannot wait for payment from your customers, an accounts receivable line of credit may solve your problems. Your business can receive the funds it needs within a few short days.
What is an accounts receivable line of credit? It is a kind of financing that involves a company selling its outstanding invoices to a lender, like Ace Biz Funding. This type of financing is great for businesses who need a short-term loan fastly for daily operational needs. At Ace Biz Funding, we pay you the invoices your company is owed at a percentage, and we get paid once your customers pay their original invoice. Our advance rates range from about 85% to 90%, we offer low interest rates, and our approval process is extremely fast. We can have your company approved in less than 24 hours!
Your business should be aware of both types of AR loans. A pledging accounts receivable loan is when a company uses its invoices as collateral for the loan, but it is still responsible to collect payment from customers. The other type of AR loan is a factoring accounts receivable loan. This is when a company sells their outstanding invoices. A lender then gives the company an advanced payment. This allows the company access to cash fastly when they need it.
Accounts receivable lines of credit are important for many industries. The retail industry greatly benefits from AR loans. They often are waiting payment for distributors, vendors and wholesalers. Sometimes payment is put off for months. When waiting for payment on a large order, emergencies can come up. Ace Biz Funding has helped companies in several industries obtain an AR loan, like logistics companies, staffing firms, cell phone tower service providers, cabinet manufactures, and hardware importers. All of these businesses needed working capital and were awaiting payment from their accounts receivable. Ace Biz Funding worked with them to get them the cash they needed.
If your business is in need of financing, Ace Biz Funding’ accounts receivable line of credit program can help. We are a trusted lender that has helped many businesses in a variety of industries. Contact us today to learn how we can get you cash fastly.