What Is Account Receivable Lending?

The worst kept secret in the financial industry right now is that lending is tough. It is tough to receive; as well as, apply for. Small businesses who apply for small business loans from banks are being turned down left and right. Financial institutions actually have only a 20% approval rate for the thousands of small businesses that apply for financing through them. There are hundreds of companies out there looking for account receivable lending and banks are turning them away. This is why more and more small businesses are turning to alternative funding providers like eBusiness Funding.

There are various alternative funding methods out on the market today and picking the right one for your business’ needs is extremely important. Ultimately it can be one of the most important decisions you can make.

Account receivable lending takes a look the value of receivables, which in this case are your unpaid invoices. The lender will then advance your business funding at a discounted rate for the invoice. This is done in exchange for the full value of the invoice when it is paid by your client.

The Benefits Of Account Receivable Lending

Lots Of Benefits In Utilizing The Account Receivable Lending Method.

• Cash Fast
  • Your business can get the funding it needs quickly by utilizing an account receivable lender.
  • In most cases you will receive funding in about 3 days from the time of application.
• Time Savings
  • Because you can get the cash quickly through this method, you free up more time to work on your business. If you were to apply for a bank loan it may take up to a few months to be approved.
  • Your savings can also be seen in the amount of effort spent on the application process. A bank application can be extremely stressful, gathering tax returns, polishing up your business plan, sitting in a bank lobby during business hours etc. Nomatter how you look at it, banks require a large amount of time commitment with low approval rates (about 20%).

The Risk Of Account Receivable Lending

You have to remember with this type of financing you are giving up a portion of the value of your invoice in exchange for cash fast! The value of your invoices are determined by a number of factors. This can be the age of the invoice, the credibility of the client and several others factors.

As a business owner, you have to evaluate how much you need the funding. Is it worth selling your invoices at a discount? If you are looking to make payroll it may be a necessity to use account receivable lending. But if you are looking for long-term financing this type of funding method is probably not ideal for you.

A Better Option

If the risks of account receivable lending are not worth it to you, there are other options available. A Merchant Cash Advance is an option that will still get you working capital quickly and will not take away the value of an invoice you have earned. Instead our process is simple.

1. Apply through our simple online form.
2. We will review your application and respond within 24 hours letting you know if you have been approved or denied.
3. After you are approved, we will directly deposit the funds into your account in just three days.
4. Then you can start using the funds immediately!
5. After we fund your business, an automatic daily draft will occur from you business bank account Monday-Friday. This will be a fixed percentage of your daily credit card sales. This is opposed to a standard bank loan that takes a fixed dollar amount each month.

We make the application process simple and easy, now you can focus on growing your business fast. Contact us to get started.

Account Receivable Funding – The Net 30 Day Solution

Traditional lenders are cracking down on the number of businesses that they are lending to. Businesses that are looking for funding to grow or maintain their business’ daily operations are struggling. Traditional lenders such as banks or other financial institutions have had to enhance their Know Your Customer policies due to regulation. This has gotten to the point that most new businesses do not qualify for most of their lending products. So they look for alternative financing sources like account receivable funding or a merchant cash advance.

To qualify for a business loan, you need the following:

• Nearly perfect credit
• A detailed business plan
  • This will need to outline the business owner’s goals for the next several years.
  • It will also have to provide a detailed plan of how you will utilize the funding provided by the bank.
• Clean and long-term business history
  • Traditional lenders are going to look for at least two years of business operations and financial statements.
• Collateral to put up against the loan
  • This can be either a personal asset or a business asset.
  • If the business is looking for unsecured funding, they will need to make sure that their other requirements are practically perfect!

Applying for a bank loan is not only challenging because of the requirements is also confusing. Sadly it is also very time-consuming. Getting approved for a bank loan can take weeks depending on how well your affairs are in order.

Account receivable funding can be much simpler. Whether you take the traditional approach or an alternative approach, the choice is yours. Understanding the differences and what works for your business is important.

With traditional account receivable funding, you give up a portion of your unpaid invoices in exchange for immediate cash. When your clients pay you back it is your turn to pay your lender. As per your agreement with the lender, you will pay them the appropriate amount based on your terms. Often times there are fees associated with this type of lending. Another thing to be aware of is that you will be giving up a portion of the full value of the invoice based on a number of factors. These factors can range from credibility of the client to age of the invoice. You will receive more funding for a more reliable client. In addition, you will receive a higher percentage of the invoice for a newer invoice compared to an older one that has been on your books for a period of time.

Because some business don’t like to give up a percentage of their invoices there are other business models out there that are more appropriate. At eBusiness Funding, we look at the potential of your business moving forward with our merchant cash advance product.

So how are we different from traditional account receivable funding?

• We offer a simple application process!
• We can get you approved in just one day, not weeks like a bank does.
  • Even better, we can get you the cash you need in just three short days!
• Spend the funds the way your business needs, not how you lay them out in a plan.
  • If you are approved for a bank loan, there will be restrictions on how you can use the money.
  • With us, we are more concerned that you are growing your business in the way that you see fit. You are the expert at your business, not us.
• High approval rate
  • A bank loan’s approval rate is 20% of all applicants.
  • We approve over 90% of those who meet our minimum requirements. That is nine out of ten!

Getting Started

So who’s odds do you like better? A banks or ours? We think that a merchant cash advance could be right for your business. Get the cash you need immediately!

Give us a call today at 305-985-6848 or complete the contact form on this page to get started now.

Account Receivable Loans – Good Idea For My Business?

Every business owner has been talking about it. The idea that the lending market is getting tighter by the day. Trying to get a business loan as a small business, especially one that is new to the game can often be impossible. So what options are out there for a business that is new to the game or has been around for awhile but can’t qualify for a traditional loan? Account receivable loans are an option that is available to small businesses that deal with a lot of invoices to clients. These can be a good option for construction contractors or catering companies that are always issuing invoices.

What are account receivable loans?

Account receivable loans allow a business to use their receivables as collateral. This means that the money that is owed to them by their customers can act as collateral in a lender agreement. The lender will advance the amount of capital that is a reduced value of the invoice. The lender will determine how much they are willing to pay for the invoice based on several factors including the age of the contract. A newer contract will receive a higher percentage of the overall value of the invoice. After the invoice is paid back by the business’ client, based on the terms of the agreement between the lender and the borrower, the borrower will pay the amount advanced plus a set percentage. Often times there will be a fee attached to the agreement as well.

The benefits of account receivable loans are that they allow businesses to continue with forward progress in their business. They do not have to wait for their clients to pay them back in order to pay their bills or employees. It also allows them to move forward with potential business expansion opportunities. The challenge is that as a business owner you have to make sure you understand the opportunities and the risks. Getting access to cash quickly through account receivable loans can be a huge positive for borrowers; however, you have to know what you are giving up. In this version of account receivable financing, you are giving up a portion of the unpaid invoices from your clients. Depending on the urgency and need for cash that may or may not be worth it.

Alternative Options

There are other options out there for you. A Merchant Cash Advance is another option that doesn’t require any collateral to be taken in order to get the funds. Instead, eBusiness Funding takes a percentage of your daily credit card sales. This percentage is pre-determined and fixed percent.

The requirements to qualify are simple. We have a 95% acceptance rate for those who met our minimum requirements. Accepted applicants must have been in business for at least six months; as well as, do at least $10,000 a month in sales revenue.

Because we do not take collateral in exchange for the advance there is a higher risk on our end. But despite these risks we can still get you approved in as little as 24 hours. Even better we can get you the cash you need quickly and deposit it into your bank account in as little as 72 hours! Another great part is you can use the cash the way you need to for your business plan. When you apply we are not going to ask for a five-year business outlook.

Getting Started

So, are you ready to get the cash you need for your business quickly and think that a Merchant Cash Advance could be the right option for you? Call us now at 305-985-6593 or complete the contact form on this page.

What Is An Invoice Factoring Loan?

The business of getting small businesses loans has become highly regulated over the last few years. It is much more of a challenge to receive a traditional business loan from a bank than it was a few years ago. Now the requirements have been increased and make it challenging for any small business to get a loan. Some banks won’t even look at a company if they haven’t been a business for two years. That is why an invoice factoring loan was created.

The requirements for getting a business loan from a bank may seem simple on the surface.

• Have good business credit and personal credit.
• Have a solid management team in place for the business.
• Been in business for two years or more (typically).
• Present a strong business model and plan for your future.
• Have a need for the funding with a detailed plan of how you plan to spend it to grow your business.
• Have collateral to help secure the loan.

When you dive deeper into the requirements they are not easy to meet. You must have nearly perfect credit and your plan for the funding must be clean. The requirements may seem excessive to some but they are necessary to a bank. This is due to the intense regulations they are under to ensure they know their customers. That is why the concept of an invoice factoring loan was created through alternative funding providers. These providers have fewer regulations for those who don’t meet the requirements as opposed to a bank.

As a business owner, you hope that all of your clients pay on time. But we know that is not always the reality. Invoice factoring loans allow you to have access to the funds your clients would have given you, at a slight discount. This discount can range in percentage based on a number of factors including age of the invoice, when it will be paid off, and the credibility of the client.

Invoice factoring loans can be called a variety of names. Account receivable financing, payroll loans, the list can go on. Depending on your search criteria you will find the right funding for your business needs. This type of loan can be used to meet any business need because typically the lender cares more about making money than how you plan to spend it.

A merchant cash advance can be a great alternative to an invoice factoring loan because it doesn’t require giving up a percentage of your unpaid invoices. Instead, it focuses on your future credit card sales. At eBusiness, we have made our process automatic to withdraw your funds on a daily basis until the advance has been paid off. This is great for some business owners because they can focus on their business and less on remembering to pay one more bill.

What are the benefits of a merchant cash advance?

• We don’t look at the length of your business history as a deciding factor.
  • When we look at your business history our only requirement is that you have been in business for at least 6 months.
  • We look at the future of your business. We don’t want to focus on your past and any mistakes.
  • Small business funding is meant to grow a business that may be in its early stages, not prevent it from being able to grow because of requirements.
• Quick Access to Cash
  • We can get you approved for a cash advance in just 24 hours.
  • Just three short days later we deposit the cash into your account.
• No Collateral
  • We are not going to ask for any collateral from you to secure the advance.

Let us help you choose the right funding option for your business today!

Get Started Now

Call eBusiness Funding at 305-985-6593 or complete the contact form on this page.

How Account Receivable Financing Works

Have you considered utilizing account receivable financing to help grow your business? Going through the process of applying for funding is never easy. The world we now live in is full of regulation for the traditional lenders such as banks. When you ask them for funding you better be prepared for a million and one questions.

What a business needs to apply for a bank loan:

• Good Credit
  • A financial institution is going to look at both the business’ credit and the borrower’s credit history.
  • It is recommended that you know both of these scores prior to applying for a bank loan.
• Personal Assets to put up for Collateral
  • A secured loan is going to require collateral to ensure the bank’s stake in your business.
  • Personal collateral can be used if the business is just starting out and does not have many assets.
• A Well Thought Out Business Plan
  • The banks want to see where you envision your company in three to five years.
  • Then they want to know how you plan to grow to get there.
  • They also want to ensure they are going to get a return on their money.
• Financial Statements from the Last Few Years
  • Banks want to see the overall health of your business.
  • They are going to be looking to approve someone for a loan who has been in business for at least two years.

When a business does not meet one or more of the above requirements for a bank loan, they are typically turned down. That is not always the case but only one in five businesses are approved for a business loan in today’s regulated environment. That means 80% of businesses are denied.

Down To Business – How It Works

For this reason, account receivable financing is becoming more and more popular.  Another name for account receivable financing is account receivable factoring. This type of financing allows a business to get a quick source of cash flow in exchange for the opportunity to get paid back by your original client. A different way to think about it is a business will sell their outstanding unpaid invoices to a “factoring” firm at a discount. The firm will give your business cash. An invoice that is newer will receive a larger amount of cash than an invoice that has been unpaid for longer. Your client’s will then pay the factor (without realizing it).

The price of receiving the cash immediately is the discount to which you sell the contract. This type of a deal will not give you the full cash value of your invoice, as the firm is also looking to make money. Typically, you should expect to give up about 20-25% of the value.  This will be determined by a number of different factors such as the age of the invoice.  The risk on behalf of the factor is that if your client’s don’t pay, they will not make any money. This assumed risk is factored into the purchase price.

Because you lose about 25% of the value of your invoices, many businesses choose to go with an alternative to account receivable financing. One alternative is a Merchant Cash Advance which allows you to keep your invoices at full value but pay a percentage of your daily credit card transactions instead. This option is great for businesses that are looking to get cash quickly but not lose the value of the contracts.

Keep Your Money

Unlike account receivable financing, we don’t get paid until you get paid from your clients. We aren’t looking to short change you on the hard work you do for your customers. We want to help you grow your business. This is why we have made it simple to apply and can get you approved in just 24 hours!

Getting Started

So are you ready to continue servicing your clients but keep the full value of your invoices? We are ready to help!

Call eBusiness Funding at 305-985-6604 or Complete the contact form on this page