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Secure Your Business Through Invoice Receivable Loans

Your business and the operational cost cannot stop for a simple fact that your clients still have to pay you. Some of your clients might be prompt and would make the payment to you without making you wait, while others often delay their payments. Accounts receivable loans are nothing but a process through which you can take loans against the money that you are suppose to receive from your client(s).

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Secure Your Business Through Invoice Receivable Loans

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  1. Secure Your Business Through Invoice Receivable Loans

  2. Your business and the operational cost cannot stop for a simple fact that your clients still have to pay you. Some of your clients might be prompt and would make the payment to you without making you wait, while others often delay their payments. Accounts receivable loans are nothing but a process through which you can take loans against the money that you are suppose to receive from your client(s). The funds raised through this financing method can be effectively used for running and growing your business.

  3. For ages this method of business finance has been one of the most effective and fastest ways to get funds for growth. Banks and other financial institutions might seem to be an option, but they are not feasible always as it involves lots of complications and a large amount of paperwork. Moreover you cannot overlook the interest amount that has to be paid towards the loan. The interest rate differs from one bank to the other, but can add up for long term loans.

  4. With the help of the invoice loans, you don’t have to worry much about increasing your financial burden, which usually happens when you borrow loan from a bank. Some of the reputed banks these days offer loans, but the businesses cannot always afford the debt burden. With accounts receivable loans, you are only able to borrow the amount you can afford because it is against your own accounts receivable or your AR.

  5. Why accounts are receivable loans the better option? Unlike banks, the factoring companies don’t check their client’s credit history as intensely, and the clients don’t have to follow a lengthy application process. It can be termed as cash in hand, which can be used anytime you need money for running your business. Factoring has been one of the oldest methods of getting cash. Invoice factoring was used during the rule of King Hammurabi of Mesopotamia, in Rome, and even during the Medici Family’s time of banking in Italy some 400 years ago. In olden days, merchants who had difficulties in rolling cash for meeting their expenses would sell their accounts receivable at a discounted price.

  6. These days the business is run by companies that are licensed to perform such a task. The companies would buy the invoices from the clients at a discounted price. Accounts receivable loans are the best and fast ways to get money when you need it. Your main focus should be to find a reliable factoring company that meets your needs. Looking for experienced staff and years in business are two great ways to determine you have a found the right source for your business financing. Stephen Perl, MS, MBA CFO of 1st PMF Bancorp "Providing Growing Businesses with Capital for over 30 years" www.PMFbancorp.com

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