Every small business knows the pain of short-term cash flow problems. Accounts receivable factoring is an excellent way to receive timely payments and fill the cash flow gaps. It frees up capital for lucrative projects. It also comes with several other benefits. This includes the ability to make your accounts receivables collection more efficient. Let’s take a look at the most important benefits of accounts receivable factoring.
Easy financing and timely payments- even with prior credit difficulties
Getting financing can be difficult with traditional banking institutions. This is particularly difficult if you have no credit history, or a poor one. However, this is not a problem with accounts receivable factoring . The factoring company will agree to your financing on the basis of your accounts receivable. It also looks at the creditworthiness of your clients. Your credit history will not affect your ability to enter into a factoring agreement.
Unlimited funding potential with Accounts Receivables Factoring
A traditional bank loan is a fixed line of credit. However, there are no limitations on the funding you can get from factoring, except the value of your receivable invoices. The more your business grows, the more you invoice. In turn, this affects the more funding you can access.
No monthly limits
With factoring, there is no obligation to factor in a specific dollar amount. You can factor as much as you need to whenever you need to.
Timely payments with accounts receivables factoring
In effect, your factoring company can take much of the administrative burden of receivables collection off your shoulders. We can offer back-office support that includes a number of services. These include collection calls, invoice management, and credit and background checks for your customers. Also, we will ensure that your payments are received on time.
Kore Capital Corporation provides short-term capital to small businesses. For more information on our line of credit, government contract financing, or accounts receivable factoring solutions, contact us today.