Funding Amounts – 80% of A/R
Loan Terms – Up to 90 Days
Interest Rate – 10% and Up
Minimum FICO Score – N/A (Invoiced Company Strength a Factor)
Payback – Upon Receipt
Funding Time – 24 Hours (after 1X 2 week Set Up)
About A/R Financing
Accounts receivable financing (factoring), will allow a business owner to access money owed to them, immediately. Many times business owners will invoice their customers, while allowing a grace period of 30+ days before the money is actually due. However, there are times where that waiting period will put a great financial strain on the businesses cash flow, and immediate access to that capital is imperative. This is when “factoring” your invoices can help out tremendously. This can be optimal because the focus is on the business that owes the receivable and not the company receiving the advance. Therefore, if your credit is poor, but the person who owes you is financially strong, the lender will be inclined to advance a portion of your outstanding invoice, in exchange for the entire amount.
The most important determination of factor financing qualification is the financial strength of the business which is being invoiced, not the business who sends the invoice. In order to be approved you must be dealing with customers who have solid credit and financial strength.
What is a Accounts Receivable (Factor) Financing?
Accounts receivable (A/R) financing allows the business owner to receive capital in the event you are owed money for services completed. This can be optimal because the focus is on the business that owes the receivable and not the company receiving the advance.
What Types of Businesses is it Good For?
Any business that bills customers for services rendered, but allows a grace period before that invoice is to be paid is a candidate for this type of financing.
What are the Minimum Requirements?
As this will be paid by the invoiced customer, not you, it is their credit rating that is the determining factor. In addition it is important to remember that whatever goods/services you have invoiced for has been completed, and/or delivered.
Why Use VentureLynk?
VL’s mission is to empower your business by making small business loans simple through options, speed, and trust. No matter the financing structure you may need, VL offers countless different loan products from a variety of lenders. Finding out which business loan is best for you is why we’re here.