These unpaid invoices are the worst for a business, if only there was a way to turn this negative into a positive source of assistance. Does this situation sound familiar? Are you overburdened with unpaid invoices? Wait! What if there is a solution? Don't stress out just yet. 

Did you know that small businesses in the US are deemed to have about $825 billion of unpaid invoices, according to Entrepreneur.com? If you're the owner of a business, you are likely aware of what it's like to be owed revenue. Enter Accounts Receivable Financing — also referred to as "factoring".  

About Accounts Receivable Financing

Accounts receivable financing assists small and large companies with resources by allowing businesses to gain access to additional capital from their outstanding invoices that don’t get paid for 30, 60, or 90 days. Basically, this allows businesses to secure funds by selling their receivables or purchase orders to continue business as usual.

Crown Financial, LLC understands that you may be befuddled right now trying to figure out what to do and where to start. Our team has put together a list of facts and benefits of account receivable financing below. 

1. Eliminate the Wait

One great thing about accounts receivable financing is that you can eliminate the 30, 60, or 90-day wait to get your money from the invoices. This, in turn, also helps your cash flow. You simply sell your outstanding invoices to an account receivable financing company like Crown Financial, who will advance you cash for your invoices. 

Speedier Cash Flow: Enjoy the advantage of being able to promptly turn your credit sales into direct cash flow for your company. Speedy funding may also offer you an advantage with your credit rating by allowing you to pay your bills on time.

2. Accessible Capital

Accounts receivable financing enables your business to maintain, if not exceed, cash flow demands by assisting in the growth of your business through sales. As your invoices grow, your factoring amount grows as well.

3. Factoring Is Swift and Seamless

Unlike traditional bank loans where you have to undergo a long credit check process, with accounts receivable financing your verification and approval process can happen within 24 hours. 

Initial verification and approval doesn't entail the long, detailed credit checks required by a typical bank loan, therefore original funding can be as quick as 24 hours. Afterwards, continued funding normally gets funded the same day after submitting your invoice. And with ar factoring your client’s credit gets checked, not yours.

4. Factoring Helps to Enhance Your Business Credit

When you get paid quicker via your invoices, you enhance the flow of cash, which allows you to meet your credit commitments on time. This also helps to boost your credit rating because it shows that you pay bills on time and that you have sufficient cash flow. 

5. Comprehensive Management Reports

Receive detailed reports that display the status of your receivables, which allows you to better handle your business and cash flow, as well as reducing the time spent prepping reports so that you can focus on your company. 

6. Your Equity Matters — So Retain It

Don't worry about giving up portions of your company's equity for funding, as with some types of funding services. Fortunately, you retain control and full ownership of your business when you have account receivable financing.

7. You Don't Have Any Debt to Repay

Say goodbye to stress and sleepless nights, say hello to cash flow and new growth. Since factoring is not considered a loan, you have no debt to repay. Factoring invoices does not incur debt like other types of loans that add to your liabilities.

8. Invoicing Assistance

When working with an accounts receivable finance company, you can get assistance with processing your company's invoices and billing — and don't forget about getting paid quicker.

Concentrate On Your Company: When you have access to working capital, you can enjoy peace of mind. This leaves you with the time needed to focus on marketing and the ongoing productivity of your company.  

Apply Now for Accounts Receivable Factoring

If you're burdened with unpaid invoices, and you're ready to turn them into cash, or if you just have questions about how accounts receivable financing works, call us today at 281.646.2905 or apply now. The staff at Crown Financial, LLC look forward to working with you so that you can work on boosting your company's brand. In the meantime, take a look at our blog over here.