Business owners of any size know that when capital is tied up in A/R it can have a negative impact on cash flow. Limits on cash flow can make managing payments for day to day operations a challenge, let alone grow your business. Many companies have found that financing receivables through Velocity Funding Solutions, made the difference by turning a challenging situation into a successful and thriving business outcome.
Accounts receivable financing, also referred to as factoring, is the discounted sale of outstanding invoices. Essentially, you are outsourcing your collections. Rather than waiting anywhere from 30 to 90 days to receive payments from your customers, you will typically receive cash in less than one business day. You can then use the funds to improve your business:
Factoring is not a loan. Therefore it does not impact your balance sheet. In fact, it preserves your available credit. Factoring reduces the risk associated with bad debt as the factoring company assumes that risk. Factoring is based more on your client’s credit and less on yours. Therefore, companies with challenged credit can gain access to otherwise unavailable funds by using factoring.
Financing your receivables with Velocity Funding Solutions, is quick and easy. You don’t have to fill out any paperwork or wait for approval as you would when applying for a business loan. Furthermore, when you sell your outstanding invoices to us, you get more than just quick funds. We offer a number of value added services, including:
Selling your A/R to us allows you to focus on your core competencies rather than collection efforts so that you can grow and expand your business.
Improve your cash flow and grow your business with factoring from Velocity Funding Solutions,. Call one of our financial specialists for a free, no-obligation analysis.