Accounts Receivable Merchant Cash Advance Factoring Help your Business Grow
Are you stuck with great but slow paying clients? It is interesting how your biggest asset (great clients) can also be your biggest liability. But that is how merchant cash advance business is. And as an owner you must adapt. Whether you like it or not, slow paying customers are here to stay. As a rule of thumb, commercial clients pay their merchant cash advance bills in 30 to 60 days. And lately, the trend has been deteriorating. So, what do you do if you have slow paying receivables. Many owners try to go to the bank to get a merchant cash advance business loan. Not surprisingly, few business owners get business loans. As a rule, banks will only finance companies that have long and established histories. This is not your case if your company is new or emerging from tough times.
If your biggest challenge is that you cannot afford to wait up to 60 days to get paid by your customers, then the solution is accounts receivable merchant cash advance factoring. Most commonly known as factoring, this type of financing eliminates the usual wait to get paid. It provides you with the necessary Merchant Cash Advance funds to pay suppliers, meet payroll and take on new business opportunities.
And how does factoring work? Simple:
1. You finish the work and send an merchant cash advance invoice to your client. You also send a copy to the accounts receivable factoring company. 2. The financing company advances you 70% to 90% of the invoice (a small reserve is held to handle disputes, etc.) 3. You get the merchant cash advance funds in 24 hours 4. As soon the customer pays the invoice to the financing company, they rebate the reserve (less a small fee)
As you can see, accounts receivable merchant cash advance factoring can easily be integrated into your business, providing you with prompt invoice payments. Usually, merchant cash advance funds are advanced within 24 hours of submitting merchant cash advance invoices. Accounts receivable factoring is easy to qualify for. Accounts can be set up in as little as 4 business days. As opposed to business loans, the main requirement for merchant cash advance factoring is to do business with strong credit worthy customers. So if you do business with good commercial clients (or the government), be sure to add merchant cash advance factoring to your business tool chest.
Back to: Merchant Cash Advance.
Posted on: August 9, 2011 02:21 AM