By financen | December 10, 2017 - 3:46 pm - Posted in Business, Factoring

Keeping a healthy cash flow can be a challenge in today’s competitive business world. You want to keep enough money on hand. However, you also have to spend money to pay for necessities like payroll, utilities, inventory, and other expenses. This dilemma can leave you wracking your brain for how to come up with the money you need to keep going each day.

Rather than allow your business to exist on the bare minimum of cash, you can instead use assets to free up money and secure financing you need to build your company. You can find out more about accounts receivable and asset based financing when you visit the company’s website today.

More about Factoring

The process of using your accounts receivable for collateral is sometimes referred to as factoring. In this type of financing, you sell your accounts receivable to the lender who in turn pays you a slightly discounted amount for them. You may receive up to 90 percent of their full value upfront or be extended financing based on that amount.

Businesses like PlumCapital.net, accounts receivable buyers, and factors then takes possession of the assets and handles the collection activities on the accounts. You can use the money for whatever purpose you deem appropriate without having to worry about collecting on the debts or managing the assets from this point onward.

Starting the Process

If you are interested in this type of financing, you do not have to undergo an extensive application process like you would when pursuing a bank loan. The entire process is handled online, and you get a faster answer in many cases than you would with an in-person meeting with a bank loan officer.

You also do not have to worry about making payments on the money if you sell your accounts receivable for cash. The financier makes a profit by paying you a discounted price for the accounts. After the debtors pay the financier, the business regards that overhead as the profit. However, you may have to pay a small processing fee for this arrangement.

You may not have the time, credit rating, or history in the business market to get financed by a bank. You need to use other means to secure the money you need to pay bills. You can use assets in your possession to get cash that you can use to make payroll, pay utilities, and meet other expenses.

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This entry was posted on Sunday, December 10th, 2017 at 3:46 pm and is filed under Business, Factoring. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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