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Accounts Receivable Financing

Accounts Receivable Financing

Accounts Receivable financing uses a business’ receivables as collateral for the loan.  Generally, the funds received are equal to a reduced amount of the receivable assets. The age of the receivables affects the amount of the loan, as the older they are the less funding will be awarded. Accounts receivable funding is also commonly known as “factoring”.

Accounts Receivable

The amount of funding on an accounts receivable loan is based on the value and age of a business’ receivables. Funds can be used for all aspects of daily business operations including, employee wages, utility bills and inventory. With no need for another type of collateral, this loan is highly attainable for businesses who have been denied a traditional loan in the past. Once an applicant is approved for a loan, the financing company typically charges a factor fee. This fee is dependent on how long it takes for the invoice to be paid. Usually factor fees are calculated on a weekly basis.

Merchant Cash Advance

A merchant cash advance eliminates the need for businesses to wait for credit card sale funds to be available. The amount of the loan is based on a fixed amount of future credit card sales, with lenders paid a direct percentage of these future credit card transactions until the loan is paid in full. Our merchant cash advance loans provide funding to be used in most aspects of business, however funds may not be used for the purpose of purchasing or holding property or material for its future interest value. A merchant cash advance typically does not require a credit check and is easily obtainable for small businesses as well as larger companies.

Purchase Orders

For businesses that need cash to fulfill customer orders we offer purchase order financing. Rather than asking for collateral the lender evaluates the credit rating of the customer, not the company. When customers have a positive history with of prompt payments, purchase order funding is attainable no matter the business’ credit score. Funding is provided to give businesses an opportunity to get back on track and can typically only be used for the payment of a purchase order. Our purchase order loans can provide funding for up to 95% of the total purchase order.

Contract Financing

Whether a business is monetizing on a contract that they are currently in negotiations with, or that they have already secured, our contract financing loans provide funding for daily business expenses. Rather than waiting months or even years to collect on your contracts, these lending options allow businesses to start projects faster and eliminate the waiting involved in repayment from clients. In addition, contract financing can play a critical role in the fulfillment of the contract by smoothing over cash flow issues.  This financing will provide the company with the funds it needs to deliver on project requirements and fulfill the contract. Funding is typically 80% or more of the total contract and does not require a credit check, making this an accessible funding option for businesses large and small.

Limited Recourse Factoring / Non-Recourse Factoring

Full recourse factoring requires the borrower to “buy back” accounts receivable which are not repaid by customers.  Limited recourse factoring is secured for a portion of the amount financed, with the lender assuming more of the risk.  If the factored invoices are not paid, then the factoring company will take the loss rather than the borrower.  Funding from this type of factoring may be used in all aspects of daily business including employee wages, construction projects, or purchasing inventory. Limited recourse factoring typically carries lower interest rates than non-recourse factoring.

P.O Box 591 Lithia FL – 33547

 

contact@probusinessfinance.com

 

813-226-7342

 

For more information contact us.

Para mas información contactenos.

For more information contact us.

Para mas información contactenos.

(813) 226 - 7342

 

 

contact@probusinessfinance.com