Account Receivable Loans ✦ Get A Business Loan Using Account Receivables - YouTube

account receivable loans how to get  a loan against accounts receivables  

call 888-653-0124 today or click the  link in the description to learn more  

minimum three months in business and  five thousand dollars per month in sales  

account receivable loans are an excellent way  to get cash quickly they are also known as  

factoring accounts receivable financing and  invoice finance an account receivable loan  

is a short-term loan where the lender provides  cash based on the value of outstanding invoices  

the borrower pays interest on the amount borrowed  and the lender collects the invoices if you want  

to learn more about account receivable loans read  on borrowing against accounts receivable if you  

have accounts receivable you can borrow against  them by taking out a loan in a line of credit  

this means you can use the money you owe to other  companies to pay off your accounts receivable  

business owners count on business growth  and profitability to stay afloat financially  

however if they don't make enough sales their  income will be insufficient for paying bills  

in this case these entrepreneurs must find  ways to increase revenue one method is  

through borrowing against accounts receivable  factoring what is it and why should you use it  

the term accounts receivable refers to any unpaid  bill to a business customers who purchase products  

from a store restaurant hotel etc sign contracts  agreeing to pay for those items at a later date  

the following information will  help you understand how this works  

one in exchange for getting paid upfront for  those invoices the business gives the factor  

all are part of their outstanding invoices  two if the business doesn't collect on any  

of these invoices we can still collect them  when it collects payment from the customers  

three factors usually charge interest on the  unpaid balance however if there's enough credit  

risk involved with the business factors  may agree not to charge interest at all  

four when the factor receives payments from the  customers he sends them directly into business  

account receivable backlog a loan backed by  accounts receivable is a secured loan where  

the lender takes ownership of the customers  outstanding invoices this means that if the  

borrower defaults the lender can seize  the customers assets to repay the loan  

this type of business loan has become popular  because many people do not like dealing with banks  

banks often require collateral such as real  estate or personal property before granting a loan  

these types of properties take months to sell  so most small businesses cannot wait that long  

in addition bank loans carry  higher rates than non-bank lenders  

for example a bank might offer six percent  while a private investor could provide 10  

also banks typically require large down payments  which makes starting up a new business difficult  

non-banks however are willing to lend without  collateral as a result borrowers must compete for  

funding since competition exists among investors  terms vary significantly between different sources  

our financing companies our financing  companies are companies that provide  

financing for many projects for businesses  the business of accounts receivable finance  

involves buying invoices from clients and then  collecting the amounts to our finance companies  

purchase invoices from various industries  including manufacturing construction retailing  

wholesale trade transportation healthcare  services professional services education etc  

they then attempt to recover the total value  of each invoice sold once recovered they remit  

funds to the client access to cash flow  is critical to a successful operation  

to access cash quickly your company purchases  invoices from the client before collection  

they then hold on to the invoices until the  debtors have made good on their obligations  

at that time the receivable companies released  the invoices back to the debtor essentially the  

difference between the original investment and  return represents the initial investment plus  

the profit an essential aspect of this model is  that it provides immediate liquidity to the client  

clients need cash fast and the our finance  company make sure that happens cash reserves and  

additional cash flow allow the client to continue  operating during periods when sales are slow  

it also helps the client avoid bankruptcy since  it does not have to rely on other creditors  

the essential advantage of using a receivable  financing company is if you get paid faster  

you don't have to wait around for  your paychecks to clear the bank  

instead you get paid right away in the form  of cash that way you can use the money to buy  

inventory hire employees etc business loans  on accounts receivable this type of business  

loan is ideal for companies with good credit  ratings and a steady flow of incoming revenue  

cash flow shortages cause problems for  all kinds of businesses but especially  

those involved in seasonal activities when  demand drops off at the end of the year  

these businesses may find themselves unable  to meet payroll or even cover basic expenses  

a business loan based upon future income  is called a revolving line of credit  

there is no set term instead the borrower  receives periodic advances according to his needs  

if he wants more money he  draws on the available balance  

he will be required to repay only interest  charges and any outstanding principal  

an influx of cash can help a struggling  business stay afloat through lean times  

business owners often turn to banks for short-term  funding because banks offer different rates than  

most alternative lenders however if a  business owner has a poor credit history  

banks might require collateral such as real estate  holdings or equipment before granting him a loan  

however if a business owner has excellent credit  he should consider applying for a small business  

loan commercial lending institutions usually  offer these types of loans as sba and local  

banks small business loans come in two varieties  secured and unsecured secured loans and balsam  

assets serving as security for repayment loan  against accounts receivable cash flow gains  

from an accounts receivables financing company  are typically higher than those gained from bank  

banks charge high fees and make up much of  their profits by charging borrowers late  

payment penalties many customers do not want to  deal with the hassle of dealing directly with  

the bank so they choose to work with a factory  factors provide better service and lower costs  

factors generally take less risk than banks  because they purchase many of their assets  

also factors tend to keep overhead low  because they operate out of one location  

and employ fewer people finally factors  can negotiate favorable terms with clients  

because they already know them well as a result  elements enjoy greater flexibility than banks  

a business credit card is another option  for obtaining quick access to funds  

most cards allow users to draw down  balances without having to put up collateral  

they also enable businesses to build long-lasting  relationships with potential new customers  

the downside is that they carry hefty annual fees  

in addition it isn't easy to obtain approval when  starting accounts receivable loan leads if you are  

looking for an alternative to payday loans then  accounts receivable financing may be rightful  

and accounts receivables financing company  rates depend on many different factors  

some include your current debt load how quickly  you need the money and whether you have other  

options the first step in getting approved  for an accounts receivable finance program is  

determining what rate you qualify for you'll get  this information after submitting your application  

once you've been accepted into the program  you'll start receiving payments every month  

your monthly payments will vary depending on your  specific situation for example you could earn  

between 10 and 20 depending on your circumstances  you may be eligible for additional perks including  

discounts on insurance premiums and accessible  legal services ask yourself several questions  

to determine which accounts receivable financing  programs are best suited for your particular needs