How Does Accounts Receivable Funding/Factoring compare to a conventional loan for a business?
Many businesses rely on accounts receivable financing in order to help small businesses grow and meet cash flow needs. Some entrepreneurs do not have the financial ability to get a bank loan. An accounts receivable loan allows you to gain the working capital needed right away. If the process to receive a conventional loan is taking too long or there is a denial in the approval process, this type of solution may be the best step.
The basic idea of accounts receivable funding is simple:
- You complete your sale and bill your customer.
- Millennium Funding purchases the invoice from you, advances you a percentage of the invoice total, and waits to get paid.
- Once we are paid for an invoice, we take a small fee and remit the remaining money back to you.
Credit is established based on the credit worthiness of your customers, instead of on your company’s financial history.
How can you benefit of Accounts Receivable Funding/Factoring?
When compared to banks and other financial institutions, factoring has many benefits to businesses of all sizes, including:
- Quick access to a steady cash flow
- Ability to coordinate with your bank
- No liability on your balance sheet
- Available credit insurance protection on your invoices
Why Do Companies Choose Accounts Receivable Funding/Factoring?
Two of the main reasons that companies choose accounts receivable funding/factoring are growth and survival. Whether your business is in need of payroll funds or is looking to fulfill a large order, there is a factoring solution that can help.
We often work with clients who need to:
- Fulfill large orders
- Increase production
- Meet payroll
- Maintain credit rating
What is Millennium Funding’s Accounts Receivable Funding Process?
- Complete application process
- Allow us to review application, current accounts receivable aging report and the Articles of Incorporation for your business
- Once approved, Millennium Funding can give you access to your cash in 24 to 48 hour
In a perfect world, all your customers would pay their bills right away. In the real world, that’s just not the case. It can take 30, 60, 90 days or more to get paid.
Why wait? Millennium Funding’s factoring program lets you turn your accounts receivables into immediate cash.
Fill out our contact form on-site or call us at 888-652-8298 to learn more about our factoring process and how we can help your business receive cash quickly from your accounts receivables.