Accounts Receivable Financing: Selling Assets to Build Your Business
Accounts receivable financing is an excellent way to get the money that you need, when you need it. Also known as factoring or financing receivables, this form of financing involves the purchase of accounts receivable invoices. Liberty Commercial Capital will purchase your customers’ debt from you, ensuring that you receive the payment right away even if the customer is not expected to pay for another 30, 60, or 90 days.
How It Works
Since this form of financing is based on the customer’s credit instead of your business’s, we can finance a wide variety of different companies—even those that are losing money, startups, or in bankruptcy. Rather than taking on a debt, you are selling an asset and outsourcing your company’s accounts receivable department. This also means that you can take advantage of valuable services such as credit checks, notification of high risks, detailed monthly statements, and even free credit insurance for some qualifying accounts.
Benefits for Your Business
This form of financing has a number of advantages. One of the greatest is speed, since you can get cash in as little as 24 hours. Additionally, there are no fixed payments, and any type of business can be financed. Accounts receivable financing is also useful because it provides you with the ability to service unexpected or unusually large orders, fund growth and expansion, respond to seasonal demands and new opportunities, and purchase inventory in bulk.
This type of financing is a valuable tool to manage your cash flow. Contact Liberty Commercial Capital today to learn more.