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.