Accounts Receivable Financing
With liquidity - the money which is required to pay suppliers, employees and business expenses is essential for regular business success. However, funding has always been a challenge for entrepreneurs. And in a given current environment of credit, getting a business loan is very difficult. Banks and finance companies are the companies that can provide commercial loans to large companies that have substantial assets.
The liquidity problem is very common for businesses that sell to other companies. In the center of society, it is customary to offer 30 to 60 days to pay your bills and other rents, especially if your customer is a large company. This creates a problem of free cash flow because you spend money on servicing your customers and then wait to be paid. You can not assume but you will receive 80% of the payments immediately after the presentation of your products / services.
Remaining after 30 to 60 days to help your company? That is, the cash flow needed to pay the rent. Employees and suppliers? An important question is, you will feel at home business if you know that you quickly get money. Financing accounts can the solution. The set is simple. You get an advance of 80% on your bills as soon as work completed. You will receive the remaining 20%, less a small fee when the invoice has been paid in full. A major advantage of
The demand for greater skill is that one business with reliable customers. In addition, your company must be free of judgments and privileges. Usually takes the process of setting up about a week and after that you can receive funds from the business day after submitting the application.
Factors that varies and depends on the quality of your customer and the amount of funding you need based. General monthly fee will be between 1.5% and 3% with respect to these variables. In general, Financing company can work well if the profit margin of at least 15%. Financing provides solutions for specific problems, the gap between the invoice for the service and payment. If you have clients who can pay up to 60 days, and you must have funds to cover operating expenses, financing is a good alternative to Accounts Receivable Loans. receivable financing is that it is easy to obtain.
Accounts receivable financing, or Factoring, is the purchase of accounts receivable invoices at a discount. If you sell your products or services to businesses that pay in 30, 60, 90 days or more, JB Financial has a liquidity solution for you. We can finance companies that are start-ups, losing money, or in bankruptcy because accounts receivable financing is based on your customer's credit, not yours. This is not a "debt." You are selling an asset. But it is more than just an asset sale; it is like outsourcing your accounts receivable department. Factors provide valuable services. They check your customers credit for you and notify you of bad risks and they provide detailed monthly statements. Qualifying accounts even get free credit insurance.
JB Financial Group is composed of a group of highly experienced and seasoned, certified, financial professionals. With our knowledge and expertise, we can usually find a solution for all your financing needs. Unlike a bank, or local lending institution, which only lend to the most credit-worthy businesses, JB Financial, with its relationships with national lenders, can usually find you the financing you need.
GoArticles Customer Service Recent Articles
Random Post
0 comments:
Post a Comment