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What Is Receivables Finance?

So, what exactly is receivables finance? In short, it is a simple way to get immediate money for your open invoices or receivables. It comes at a cost of one to four percent of the receivable’s value. It is easier to qualify for than a bank loan, and the speed of application turnaround is typically a few days. Here are the details for what receivables finance is.

How Does Receivables Financing Work?

Receivables financing is an extremely flexible way of financing the growth of your small, medium, or large company. It’s based on your receivables. Essentially, we bridge the gap between when you complete a sale, deliver the product or complete the service, issue the invoice, and when your customer pays you.

Why Does Receivables Financing Improve Cash Flow?

So, it’s all based on that time period between those two points. For most companies, that can be a real drain on their cash flow. They have to give credit to their customers. Then, they have to wait for their customers to pay. However, with receivables finance you don’t have to wait. You’re going to get an advance on the receivable at the point it’s created, and it’s very flexible. You can eliminate the cash flow gap from selling on credit terms. More cash on hand means more stability for your business growth.

bridge cash flow gap

What Makes Receivables Financing Flexible?

You can choose to fund most customers or maybe just one or two. The invoices you finance are up to you and whatever suits your business. A receivables finance company’s goal is to finance according to your particular cash flow needs.

Can You Qualify for Receivables Financing?

It’s very quick and easy to apply for. Receivables financing companies will just want to have some information about you, your company, and most importantly your customers. We’re less focused on your personal credit and more interested in what your product/service is and who you’re selling to.

How Fast Can You Get Funding?

Receivables financing is fast. The turnaround time for a receivables finance application can be days rather than weeks or months as with traditional lenders such as banks. It’s really designed to get you the cash that you need to grow your business.

fast small business funding

Is Receivables Finance a Loan?

Receivables finance is not a loan. You’re not going to make repayments on a receivables finance facility. We use the receivable that you create, the invoice you create, and your customer to repay the advance we provide to your company. It fits totally in line with your business and your growth plans. So, if you sell on credit terms to business customers, this is a great tool and a funding solution you should really take a look at.

Receivables Finance Company for Small Businesses

Eagle Business Credit is a receivables finance company in Atlanta, GA. We provide funding to small businesses based on the value of their open invoices. Receivables financing is a cash flow accelerant through providing immediate funds and eliminating the waiting period associated with B2B sales on credit terms. Another name for receivables finance is invoice finance or accounts receivable finance. If you are a small business owner looking to improve cash flow without taking on additional debt, financing your receivables could be an answer for your funding needs.