Is receivables financing right for your -

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Is receivables financing right for your - Powered By Docstoc
					When conventional financing is not an option for your business, receivables financing
may be. When running a small business you find yourself in need of extra cash
sometimes. When your cash flow is low or when you have unexpected expenditures.
Receivables financing is when you trade your accounts receivable to a factoring
company for a discount. The process is simple and quick. You sell your accounts
receivable to a factoring company for a discount and receive about 80% of the funds
upon completion of requirements. The company then handles the collection of the
receivables and gives you what they owe you minus their fees.
  There are several benefits to receivables financing. It can provide your business with
working capital and help steady your cash flow. You can also increase your sales by
having the option to extend credit to your customers. This enables online buying and
you getting your money quickly and efficiently from buyers. You can use this type of
financing as long as your business can make sales to customers that can be verified
and your product is completely deliverable. Receivables financing doesn’t require
business plans or all of the other stuff needed with loan applications. Therefore, you
can get qualified in a day or two for the money. You can also determine what invoices
you are going to sell. This gives you the power to only sell large invoices or ones that
are half way through their term.
  Receivables financing is beneficial to small companies. These types of companies
have a harder time getting conventional loans. It can stimulate growth of their
business through working capital. Steady cash flow can also be easily achieved by
small businesses through receivables financing. The size of your business doesn’t
make a difference really. If you have a business it can benefit from receivables
  When you have no corporate credit to apply for loans or if your business is in
immediate need of funds, receivables financing is a good way to go. It will get you the
cash you need to take care of things. From business expansion to equipment purchases,
if you have account receivables that you can sell to help you acquire these items, it
may be worth it. Keep your credit in mind with whatever you do and try to keep it
clean. Doing anything that may hurt your corporate credit would be un-wise.
Receivables financing is good in a pinch, your credit will be with you forever and will
help you when you need it the most.
  Corporate Credit Concepts specializes in helping educate business owners how to
build business credit. Feel free to visit their home page for more information: