Using Accounts Receivable Financing for Your Business

One of the best tools that all small business owners have is financing. No matter what situation you find yourself in, a small business loan can help you get back on your feet. Accounts Receivable (AR) Financing is a special type of loan designed to be attainable very quickly. If you find yourself facing unexpected expenses or a surprise emergency, financing receivables may be the solution. Regular use of accounts receivable financing can even help to stabilize your business’s cash flow, eliminating those peaks and valleys you can experience while waiting for your customers to pay you. So, turn to Value Capital Funding to learn more about how you can take advantage of this special type of loan.

How it Works

The accounts receivable loan is different from other types of financing because it uses your customers’ unpaid invoices as collateral. Financing can be provided quickly, allowing you to cover whatever expense you are facing.

There are two types of accounts receivable financing: notified and non-notified. We offer both types, and which type is right for you will depend on the amount of the invoice or invoices you use as collateral, and the frequency with which you use, or plan to use, this method of financing. With notified accounts receivable financing, when it is time for the loan to be repaid, we collect on the invoice directly from your client. This makes it difficult to accumulate debt while giving you capital quicker than waiting for the invoice to be due. With non-notified accounts receivable financing, you continue to collect payments directly from your client as you always have. Benefits of AR Financing include:

  • No fixed payments
  • Short processing time
  • More flexible options
  • Increased cash flow

Value Capital Funding is committed to helping you get the capital you need. We are passionate about helping small business owners and we would be happy to answer your questions, so feel free to give us a call anytime.