Wednesday, January 21, 2009

Accounts Receivable Finance - Business Invoice Factoring

Operating Capital

In the current economic environment, small to mid-sized businesses are finding it harder and harder to stay in business.

One of the biggest hurdles to businesses, whether growing or shrinking, is keeping cash flowing steadily through it.

Banks are not lending as much and not nearly as easily as in times past. Suppliers want to be paid quicker, while customers want longer to pay. This causes cash flow problems to all kinds of businesses.

A solution that some might forget about is Accounts Receivable Finance. This simply converts A/R into liquid cash at the discretion of the business. If managed properly, A/R Finance can literally unlock liquidity issues within a business and allow it to operate at whatever size the owners deems necessary.

Essentially A/R Finance is comparable to a line of credit, which banks are not extending as much. The main difference is that A/R Finance is mainly based upon the A/R of a business, while a Line of Credit is mainly based upon the tangible assets and person credit worthiness of the owner of this business. A/R Finance is also very flexible in terms of the line amount. This means that the total line amount increases in speed with the A/R or Sales.

To learn if this is a viable option for your company fill out a short questionnaire at - Accounts Receivable Financing

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