In businesses in many different industries and of all different sizes, there are times when invoicing and the terms of payment leave gaps with regards to cash coming into the business on a timely basis. When a business has invoices pending payment, financing accounts receivable in Boca Raton, FL provides the solution to this very common problem.
The issue is not in poor management of funds by the business; it is in the time gap between offering the service or the products, the invoicing, and the final payment. For many contracts, a company has to pay up front for materials, employee time, and other components of the contract, yet they won’t receive their payment until 30, 60, or 90-days after invoicing.
This gap in cash out and cash in can be alleviated through financing accounts receivable. Small to large businesses in Boca Raton, FL can use this funding to make payroll, cover invoices, order new materials or supplies and take on new contracts.
When working with a top factoring company the steps in financing accounts receivable in Boca Raton, FL are very simple and designed to be business friendly. An online application, which is done without a fee and with no obligation, will result in notification of approval within 24 hours.
As this is not a loan or a line of credit, there is no need for a personal guarantee and no need for cumbersome applications. The factoring company will verify the invoices and the businesses, and then, after approval, provide funding up to a set percentage of the total value of the accounts receivable.
When financing accounts receivable the business can choose to factor some or all of their accounts. The best factoring companies will charge a competitive rate for their services and not add on any additional fees for their service. They will also not charge a termination fee, giving the business maximum freedom in using the service.
This allows the business to know just what the cost of factoring will be based on the terms of the agreement. When financing accounts receivable, the business will also be provided with any balance after the invoice is paid and the factoring company deducts their rate for the service.
By financing accounts receivable in Boca Raton, FL a company can have the cash flow they need without taking out a loan, using a line or credit, or worrying about repayment and interest. Understanding the process will help any business owner see the potential in this funding source for their business.