Top 3 Benefits of Getting Accounts Receivable Financing

Man checking his financesIt’s always a tough decision pulling out a loan, especially when you’re struggling to grow your business in a very competitive environment. When you need a little bit of extra money, however, you really have no choice but to go for it.

Fortunately, there are many options to go for, and among the most beneficial is accounts receivable financing. Here are three of the biggest benefits of this loan option:

There’s no need for collateral.

One of the most difficult things about pulling out a traditional loan is that it’s challenging to find the right kind of collateral. If you set a larger item or piece of property as collateral, you might get a larger loan amount, but you also risk a whole lot more. With accounts receivable, you don’t need bigger collateral, as it is entirely based on existing, unsold inventory.

You keep your business.

Because you don’t risk collateral with accounts receivable financing, you ultimately retain control of your business no matter what happens. All you effectively lose is inventory that you haven’t been able to sell, anyway. The financing company assumes responsibility and ownership of this stock and sells them off to recoup what they lent you. Because of this arrangement, there’s no risk at all to your business.

It’s a quick way to get cash.

Finally, it’s a very quick way to get cash fast. Naturally, the expediency of this arrangement depends on the financing company that you approach. The best companies, however, have faster turnover rates because they have equally fast appraisal times as well. This ultimately becomes faster as you build a relationship with your financier.

Provided you are careful and discerning, this can be a powerfully lucrative means of getting money for your business quickly.