For many small business owners, waiting for accounts receivable to come in can be the difference between life and death. They?re making money, but until their customers pay on invoices, keeping the wheels of a healthy business greased can be a challenge. That?s one reason why many small business owners choose financing receivables. Here the what, who, how and when of an asset based loan in Kennesaw, GA, is detailed.
Asset based lending allows a business easy access to cash flow. In an asset based loan, a lender loans against a valuable piece of equipment, inventory or even against your accounts receivables. Another popular financing option is known as factoring. In this type of asset based loan, a lender boosts a small business?s cash flow by giving business owners an advance on their accounts receivables. When those customers pay, the lender keeps a percentage. Many invoice factoring lenders will allow business owners to choose which invoices are factored. This means your customers who typically pay in a short time frame can be exempted, while the invoices of those customers that are likely to wait 45-60 days to render payment are factored, or advanced to you.
One benefit to an asset based loan is that they are easier for new businesses and businesses experiencing growing pains to access than traditional commercial loans, which typically require great credit and strong revenue history.
The approval process for receivables servicing in Kennesaw, GA, are simple and quick. Generally, your credit isn?t the determining factor in the approval process; the decision is made based on the credit scores of your customers.
In many instances, the time from applying to money in hand takes less than two days. As an added bonus, invoice factoring isn?t considered a loan, so it won?t affect your credit score.
Maintaining positive cash flow is the life blood of any healthy small business. An asset based loan or invoice factoring may be the solution to helping your business expand and grow.