Accounts Receivable Financing
Get Started
Ready to Get Started?
If you’d like to know more about financing receivables, don’t hesitate to contact us. See the possibilities waiting to be tapped in your business with help from the pros.
Accounts Receivable Financing For Your Business
No More Waiting to Grow Your Business
If you allow your customers to wait as many as 30 or more days to pay for your products or services, you could be crippling your revenue without realizing it. Rather than ask your customers to pay as soon as they purchase your wares, you can instead look into accounts receivable as a way to access and use the money you’re rightfully owed, and O2 Capital: Business Funding Solutions is here to show you how to do so the right way.
The Advantages
There’s nothing but benefits to be enjoyed when it comes to financing receivables, some of which include:
- Not having to worry about fixed payments or personal guarantees
- Having the financial resources to fulfill large and sudden orders
- Not having to put off purchases or projects while waiting to receive money from customers
- Being able to offer your customers no-cost credit insurance
And because we’re so well experienced with accounts receivable, we’re able to assist well-established companies as well as those that are just getting started. We can also help if you’re currently involved in bankruptcy. Additionally, your financing is based on your customer’s credit rather than your own.
Frequently Asked Questions about Invoice Factoring
What is Invoice Factoring?
Invoice factoring is a financial service that allows businesses to sell their accounts receivable (invoices) to a third party (a factoring company) at a discount. This offers the business immediate funds that can be used for cash flow needs rather than waiting for the payment terms of 30, 60, or even 90 days.
How is invoice factoring different than a bank loan?
Invoice factoring differs significantly from a bank loan:
- Immediate Cash Flow: Instead of borrowing money, you are selling your outstanding invoices at a discount to get immediate cash.
- Collateral Not Necessary: Unlike bank loans, which usually require collateral, invoice factoring relies on the financial strength of your debtors.
- Easier Qualification: The qualification for invoice factoring is based on your customers’ creditworthiness, not merely your business’s credit history, making the vetting process often less stringent than for bank loans.
- Flexible Terms: Factoring arrangements are generally more flexible and can grow with your sales, as opposed to a fixed loan amount from a bank.
- No Debt Incurred: Since you are not borrowing money, no debt is added to your business’s balance sheet, which can be favorably looked upon by potential investors or lenders in the future.
What are the benefits of invoice factoring for my business?
- Improved Cash Flow: Get faster access to revenue that your business has already earned but has not yet collected.
- Debt-Free Financing: Since it’s not a loan, it doesn’t add debt to your company’s balance sheet.
- Time-Saving: Outsourcing your accounts receivable management to a factoring company saves you time on billing and collection efforts.
- Helps With Growth: The immediate influx of cash can help fund business growth, such as purchasing inventory, funding new orders, or hiring staff.
Who can use invoice factoring?
Any business that issues invoices with payment terms can use invoice factoring. It is especially beneficial for businesses in industries where long payment terms are standard, including manufacturing, wholesale, transportation, staffing, and consulting.
Is my business eligible for invoice factoring?
Eligibility can vary between factoring companies, but generally, if you have invoices from creditworthy clients and a business free from legal and tax problems, you may be eligible for invoice factoring.
Get in Touch
O2 Capital
(336) 815-2500
hello@o2-capital.com
Our Offices
Phone: 336-815-2500
Begin The Process