my articles | learn more about DirectoryM articles | contact us | advertise with us   
 
SEARCH:
Quick Search Results

Searching...

ABOUT US | VIEW ALL FEATURED ARTICLES | VIEW ALL TOPICS | VIEW ALL REGIONS | DM MOBILE | DM BLOG

Accounts Receivable Financing Connecticut

Accounts Receivable Financing is a type of business loan where a company in Connecticut is able to borrow money using there accounts receivables as collateral. Accounts Receivable Financing is available to both large and small firms in Connecticut, and this website will explain how these loans work.
1. Local Companies
2. Accounts Receivable Financing - Info
3. Factoring versus Bank Loan
4. How it Works
5. Featured National Company

1. Local Companies

Beneficial Connecticut Inc
(203) 743-6356
Danbury, CT
Textron Financial Corp
(860) 528-5475
60 Hartland St
East Hartford, CT
Bev Capital
(203) 724-1100
263 Tresser Blvd
Stamford, CT
Water Street Service Corp Connecticut Inc
(203) 531-7000
111 Mill St
Greenwich, CT
Textron Financial Corp
(860) 652-8987
45 Glastonbury Blvd
Glastonbury, CT
Capital Research Partners & Co
(203) 454-0355
327 Riverside Ave
Westport, CT
Midcap Business Credit Llc
(860) 561-6155
433 S Main St
West Hartford, CT
GE Capital
(203) 796-1000
44 Old Ridgebury Rd
Danbury, CT
Galway Financial Group Inc
(203) 869-3334
9 Greenwich Office Par
Greenwich, CT
Auto Resources Limited Inc
(203) 756-1704
815 Hamilton Ave
Waterbury, CT


2. Accounts Receivable Financing - Info

Accounts receivable financing is essentially the selling of invoices to receive immediate income and capital for a business. Also know as Invoice factoring, it is a billion dollar industry. Unbeknownst to most small companies, invoice factoring has been around for years and is often utilized by larger companies. It is only recently that this service has been offered to small companies which have a great deal of trouble getting funding from banks and financial institutions.

Accounts receivable financing is based on the overall credit rating of the invoiced customer and not solely on the credit rating of the client company. This allows client companies with less than two years of history. It also allows companies in financially difficult times to utilize accounts receivable financing.

The overall funding process is simple enough. Your company invoices your customer for services or goods you provided. Your company sends in the invoice to the factoring agent. Funds are then either wired into or deposited directly into your account. The process takes about 48 hours to receive the funding. Once the invoice has been paid by your customer, the factoring agent takes out the factoring fee, generally 2 to 3% from the 20 to 25% of the invoice face value not funded. Any remaining funds are then transferred directly to you. Again, this process takes about 48 hours.

Accounts receivable financing involves the act of selling of outstanding invoices to other companies that then take on the debt owed. Companies that offer accounts receivable financing solutions buy invoices at discounted rates and the money serves as a source of fast cash for businesses in need of cash.

Need a Business Cash Advance? Call 877-749-5731

3. Factoring versus Bank Loan

Factoring versus Bank Loan Many small businesses in Connecticut have difficulty acquiring loans or lines of credit from traditional financial institutions. There are a number of reasons for this. Credit history, length of time in business, collateral, and the type of industry all play heavily into a bank’s decision to loan or not to loan money.

Additionally, banks may be ill equipped to handle the job of monitoring invoices and inventory of a particular industry. They may not want to take on the risk associated with that type of funding option. Furthermore, they may not fully understand the industry that your company competes in. To a banker, a lack of understanding equals greater risk and greater risk often times equals a denial.

By contrast, factoring companies rely on the creditworthiness of your clients. There are no rigid standards to meet on your company’s part. New business and old businesses alike can benefit. Furthermore, some factoring agencies actually offer factoring solutions to companies under bankruptcy protection.

There are a number of benefits derived from the use of accounts receivable financing solutions. First, the company that is selling invoices can rid themselves of the hassle of handling various debts—the debts become the problem of the company offering accounts receivable financing solutions. Also, a company in need of money can get their hands on some fast cash, thanks to accounts receivable financing services.

Need a Business Cash Advance? Call 877-749-5731

4. How it Works

How it Works The initial application process is completed relatively quickly. The paperwork is minimal for the world of corporate finance. Most of the paperwork should already be on hand or easily obtainable. Paperwork includes a two year history, if applicable, of the company P&L, balance sheet, and income statement. Prior invoices may need to be submitted so that the factoring agent may get a better understanding of the invoicing process and format used in your industry and by you and your clientele. The packet is then reviewed by the factoring agent. Upon approval, a Letter of Intent (LOI) is submitted to the client company. This LOI is then signed by the company and returned. A contract is submitted. Due diligence is performed one last time by the factoring agent. Final approval is granted. The invoice factoring begins. The entire application process takes as little as two weeks. If open invoices are submitted during the application process, funding for these invoices generally takes a few additional days due to the newness of the account.

The funding process takes 24 to 48 hours. This is the amount of time from submission of the invoice until funding is received into the business account. As any business owner can tell, this is a fraction of time when compared to waiting 35 to 45 days for payment of an invoice.

Funding amounts vary depending on the terms of your businesses loan. Typically, the factoring is done at 80% of the face value of the invoice. Say for example the invoice your company submits to the factoring agent is for $200,000. The amount of funding your company would receive initially would be 80% of the face value which would be $160,000. Once payment is received by the factoring agent, the factoring fee is taken out of the remainder. This can be anywhere from 2 to 3% of the funding amount. At a 3% funding rate the fee would be $4,800. This amount is then deducted from the $40,000 and the remainder is transferred directly into the account.

Need a Business Cash Advance? Call 877-749-5731

5. Featured National Company

AmeriValue

Call (866) 499-0922 to get a Business Cash Advance quote

(866) 499-0922
Kansas City, MO
Business Cash Advance

Call (866) 499-0922 to get a Business Cash Advance quote

Read more about Accounts Receivable Financing

Regional Articles
- Accounts Receivable Financing Ansonia CT
- Accounts Receivable Financing Avon CT
- Accounts Receivable Financing Berlin CT
- Accounts Receivable Financing Bethel CT
- Accounts Receivable Financing Bloomfield CT
- Accounts Receivable Financing Branford CT
- Accounts Receivable Financing Bridgeport CT
- Accounts Receivable Financing Bristol CT
- Accounts Receivable Financing Brookfield CT
- Accounts Receivable Financing Cheshire CT
- Accounts Receivable Financing Clinton CT
- Accounts Receivable Financing Colchester CT
- Accounts Receivable Financing Coventry CT
- Accounts Receivable Financing Cromwell CT
- Accounts Receivable Financing Danbury CT
- Accounts Receivable Financing Danielson CT
- Accounts Receivable Financing Darien CT
- Accounts Receivable Financing Derby CT
- Accounts Receivable Financing East Hampton CT
- Accounts Receivable Financing East Hartford CT
- Accounts Receivable Financing East Haven CT
- Accounts Receivable Financing Ellington CT
- Accounts Receivable Financing Enfield CT
- Accounts Receivable Financing Farmington CT
- Accounts Receivable Financing Glastonbury CT
- Accounts Receivable Financing Greenwich CT
- Accounts Receivable Financing Groton CT
- Accounts Receivable Financing Guilford CT
- Accounts Receivable Financing Hamden CT
- Accounts Receivable Financing Hartford CT
- Accounts Receivable Financing Jewett City CT
- Accounts Receivable Financing Madison CT
- Accounts Receivable Financing Manchester CT
- Accounts Receivable Financing Meriden CT
- Accounts Receivable Financing Middletown CT
- Accounts Receivable Financing Milford CT
- Accounts Receivable Financing Monroe CT
- Accounts Receivable Financing Mystic CT
- Accounts Receivable Financing Naugatuck CT
- Accounts Receivable Financing New Britain CT
- Accounts Receivable Financing New Canaan CT
- Accounts Receivable Financing New Fairfield CT
- Accounts Receivable Financing New Haven CT
- Accounts Receivable Financing New London CT
- Accounts Receivable Financing New Milford CT
- Accounts Receivable Financing Newington CT
- Accounts Receivable Financing Newtown CT
- Accounts Receivable Financing Niantic CT
- Accounts Receivable Financing North Haven CT
- Accounts Receivable Financing Norwalk CT
- Accounts Receivable Financing Norwich CT
- Accounts Receivable Financing Old Saybrook CT
- Accounts Receivable Financing Orange CT
- Accounts Receivable Financing Plainville CT
- Accounts Receivable Financing Plantsville CT
- Accounts Receivable Financing Ridgefield CT
- Accounts Receivable Financing Rocky Hill CT
- Accounts Receivable Financing Sandy Hook CT
- Accounts Receivable Financing Seymour CT
- Accounts Receivable Financing Shelton CT
- Accounts Receivable Financing Simsbury CT
- Accounts Receivable Financing Somers CT
- Accounts Receivable Financing South Windsor CT
- Accounts Receivable Financing Southbury CT
- Accounts Receivable Financing Southington CT
- Accounts Receivable Financing Stafford Springs CT
- Accounts Receivable Financing Stamford CT
- Accounts Receivable Financing Storrs Mansfield CT
- Accounts Receivable Financing Stratford CT
- Accounts Receivable Financing Suffield CT
- Accounts Receivable Financing Tolland CT
- Accounts Receivable Financing Torrington CT
- Accounts Receivable Financing Trumbull CT
- Accounts Receivable Financing Uncasville CT
- Accounts Receivable Financing Vernon Rockville CT
- Accounts Receivable Financing Wallingford CT
- Accounts Receivable Financing Waterbury CT
- Accounts Receivable Financing Waterford CT
- Accounts Receivable Financing Watertown CT
- Accounts Receivable Financing West Hartford CT
- Accounts Receivable Financing West Haven CT
- Accounts Receivable Financing Weston CT
- Accounts Receivable Financing Westport CT
- Accounts Receivable Financing Wethersfield CT
- Accounts Receivable Financing Willimantic CT
- Accounts Receivable Financing Wilton CT
- Accounts Receivable Financing Windsor CT
- Accounts Receivable Financing Windsor Locks CT
- Accounts Receivable Financing Winsted CT
- Accounts Receivable Financing Wolcott CT
Related Local Event
HOLIDAY NETWORKING GATHERING
Dates: 12/4/2008 - 12/4/2008
Location: Country Club of Darien
Darien CT
View Details
Rate Article
     
Articles Insider
Rss   Delicious   Digg   Add To My Yahoo   Add To My Google   Bookmark   Search Plugin
Topics:
Advertising Educational Content Home Appliances Real Estate Resources
Business Services Entertainment Home Electronics Software
Career Family Home Services Technology
Cars Fashion Internet Telecommunications
Chamber of Commerce Financial Services Legal Trade Shows
Computer Hardware Franchise Miscellaneous Travel
Construction Health Nightlife Weddings
Education Holidays Online Database World History
Articles.DirectoryM.com | Search | About Us | Contact Us | Mobile | Blog | En Español
Copyright © Interaction Media Group. All rights reserved.