Benefits of Accounts Receivable Financing

A business owner can utilize accounts receivable financing in order to free up working capital that can then be used for any business need. The amount of cash the business owner will receive depends on the age of their receivables. The newer the receivables are, the more capital the business owner can obtain. Usually no money is given for any receivables that are older than 90 days.  


If the business owner has used most of their capital for inventory-related needs, the accounts receivable cash injection can let them return their attention to growing their business. A business owner can also use the capital to meet their monthly payroll requirements, increase the amount of their staff, payoff creditors, or to purchase any items they may be in need of that they can then use to increase sales.

The company that does the accounts receivable financing for the business owner usually does not require any income tax returns or other business purpose documents to be provided. This saves valuable time if the business owner is in immediate need of cash in order to be able to continue operating.