What is Receivables Financing

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Geoffrey09

Guest
So for some this is a new topic but for accountants its a common term that they encounter everyday in their works.

What is receivable financing? In simple term it is the selling ar assigning of your earning thru account in a lower price. Why does people sell their receivables in lower price if they can earn it in a full amount? Because they want to advance the cash flow from those receivables, some circumstances force enterprises to sell their receivables at lower price because they need to pay something immediately or they need to loan something and they need to use those receivables as a collateral for the loan. There are many ways used in receivable financing that helps entrepreneurs cope up with the heated competition in the world.
 

behappie

New member
Account receivable is one of the most fantastic ways of financing a business. It is not as cumbersome and tedious in process on like outright loans and overdraft. This type of asset-based financing allows companies to get instant access to working capital without jumping through the hoops or dealing with the lengthy waits associated with getting a business loan.

When a business leverages its accounts receivables to boost its cash flow, it also doesn't have to worry about repayment schedules, and instead of focusing on trying to collect bills, it can focus attention on other core aspects of its business. In addition to providing a unique financing option for businesses, factoring companies also offer other services.

These accounting-centered services include running credit checks on new clients and generating financial reports.Account receivable is one of the most fantastic ways of financing a business. It is not as cumbersome and tedious in process on like outright loans and overdraft. This type of asset-based financing allows companies to get instant access to working capital without jumping through the hoops or dealing with the lengthy waits associated with getting a business loan.

When a business leverages its accounts receivables to boost its cash flow, it also doesn't have to worry about repayment schedules, and instead of focusing on trying to collect bills, it can focus attention on other core aspects of its business. In addition to providing a unique financing option for businesses, factoring companies also offer other services. These accounting-centered services include running credit checks on new clients and generating financial reports. receivable is one of the most fantastic ways of financing a business.

It is not as cumbersome and tedious in process on like outright loans and overdraft. This type of asset-based financing allows companies to get instant access to working capital without jumping through the hoops or dealing with the lengthy waits associated with getting a business loan.

When a business leverages its accounts receivables to boost its cash flow, it also doesn't have to worry about repayment schedules, and instead of focusing on trying to collect bills, it can focus attention on other core aspects of its business. In addition to providing a unique financing option for businesses, factoring companies also offer other services. These accounting-centered services include running credit checks on new clients and generating financial reports.
 
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