Accounts Receivable Financing New Port Richey FL

Accounts Receivable Financing is a type of business loan where a company in New Port Richey is able to borrow money using there accounts receivables as collateral. Accounts Receivable Financing is available to both large and small firms in New Port Richey, and this website will explain how these loans work.


1 . Local Companies

Check N Go of Florida Inc
(727) 376-1800
7205 State Road 54
New Port Richey, FL
Check 'n Go
(772) 388-9820
13523 US Highway 1
Sebastian, FL
Olde Cypress Community Bank
(863) 675-0224
45 N Bridge St
Labelle, FL
Florida's Lending Source Llc
(239) 997-3700
13180 N Cleveland Ave
Fort Myers, FL
Sunbelt Credit
(904) 264-6175
550 Wells Rd Ste 9
Orange Park, FL
Whitney National Bank
(850) 269-3400
14060 Emerald Coast Pkwy
Destin, FL
Bm Auto Capital Llc
(954) 456-1144
3800 S Ocean Dr
Hollywood, FL
United Auto Credit Corp
(850) 494-2522
6565 N W St Ste 200
Pensacola, FL
Check 'n Go
(904) 317-8669
3776 Blanding Blvd
Jacksonville, FL
American Aircraft Funding Company
(813) 759-9367
2401 McGee Rd
Plant City, FL

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 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.

3 . Factoring versus Bank Loan

Factoring versus Bank Loan Many small businesses in New Port Richey 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.

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.
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- Account Receivable Factoring New Port Richey FL
Account receivable factoring is something that all businesses must take into account when creating their financial income statements at the end of a fiscal term, whether it's in quarters or years. Regardless of how a company defines its terms, accounts receivables can be some of the most important aspects of the well-being of a company.
- Sources Of Financing For Small Business New Port Richey FL
- Invoice Factoring New Port Richey FL
- Invoice Factoring New Port Richey FL
- Invoice Factoring And Invoice Discounting New Port Richey FL
- Venture Leases And Loans For Start-ups New Port Richey FL
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- Accounts Payable New Port Richey FL
- Business Cash Advance New Port Richey FL
- Understanding Cash Flow New Port Richey FL

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