How is accounts receivable funding different than a loan from a bank?
Is your small business in financial trouble? Do you have several thousands in accounts receivables, but are unable to get the money now? There is an option that can get you your money now and with ease! An accounts receivable funding company can give you a type of loan. However, it is not necessarily a loan per se. A company will give you money based on how much your customers owe you, then you pay the company back when your customers pay. Of course, there is a small interest rate associated with this loan as they too must make a profit. Why would one choose this type of loan? There are several reasons to prefer an accounts receivable fund over a standard loan.
To begin, an accounts receivable fund and factoring helps you get money immediately, just as a normal loan would, except you have the money coming in from your customers to pay it back. When your customers pay you, you can immediately pay the loaning company back the amount they loaned you. This creates security within the business and ensures the ability to return the money that you received. Using receivables as collateral is highly attractive to anyone taking out an accounts receivable fund. Loans can people into financial trouble because they do not have sufficient funds to repay the loan and this is where the accounts receivables come in. You have a guaranteed way to pay back your loan on time and with ease.
The second benefit of using an accounts receivable loan vs. a standard loan is the higher accessibility. With a regular loan there is no guarantee to the loan provider that the money will be returned. However, with accounts receivable to back up your credibility you can get your loan faster and request larger amounts. This allows for increased spending, more business expansion, and increase your revenue more quickly.
Thirdly, an accounts receivable loan can help your business in a time of need. If you need cash fast, but do not have the time for a traditional loan, an accounts receivable loan can get you your money fast. Accounts receivable funds can be great collateral for cash and are easy to pay back.
If you need quick cash to cover your bills or expenses, why not use your accounts receivable to ensure a quick and easy loan that has more benefits and functionality than a traditional loan? Contact HF Holdings, Inc. today for more tips on whether this option is right for you!
To get started today, call our toll free 1-877-680-6064 to speak with an associate or fill out the form above and we will contact you within 24 hours.