Calculator and Pen doing accountingUsing Accounts Receivable Financing to Manage Cash Flow

Accounts receivable financing is a process by which your company sells some or all of its commercial invoices to a factoring company at less than face value, in exchange for a quick infusion of cash which can be used for any business purpose. This process is also called “factoring”. With factoring, businesses can get an advance on invoices as soon as the buyer agrees to pay. So instead of waiting 30, 60, 90 or even 120 days for customer payment, factoring can provide cash immediately.

For accounts receivable financing, you need to have an “approved to pay” invoice from your clients. Purchase order financing is another good option for getting cash advances on large orders before invoicing your clients.

Benefits of Accounts Receivable Financing

In addition to unlocking working capital, accounts receivable financing offers other clear benefits:

  • Quick funding facility set-up in 1 to 2 weeks
  • Credit risk and collections management
  • Can be a bridge to longer-term financing
  • No balance sheet debt created
  • No financial covenants or collateral required

Industries That Can Benefit

Many industries can take advantage of accounts receivable financing, including:

  • Manufacturing
  • Oilfield services
  • Trucking
  • Heavy construction
  • Solar energy
  • Information technology
  • Staffing
  • And many others!

With factoring facilities from $50,000 to $30 million, Speritas Capital can arrange financing to support start-ups to lower middle-market companies. Companies experiencing high growth, negative equity or credit issues can benefit from accounts receivable financing.

Contact Us

You need a strategic, cost effective solution to your financing needs and a funding partner you can trust. Let us put our decades of banking and structuring experience to work for you – contact Speritas Capital Partners about accounts receivable financing today.