Accounts Receivable Financing Pennsylvania

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


1. Local Companies

GH CAPITAL, INC.
(609) 334-0721
@ E Thomson Avenue
Springfield, PA
Seven Fields Funding Solutions, LLC
724 741 0445
603 Cheshire Drive
Seven Fields, PA
PRAXIS CAPITAL, LLC
(484) 537-0600
One Tower Bridge, Suite 975
West Conshohocken, PA
AmeriValue
(866) 499-0922
Philadelphia, PA
Thomson Capital Group
215-489-9232
Box 655
Doylestown, PA
AmeriValue
(866) 499-0922
Pittsburgh, PA
Genworth
(215) 355-2376
894 Almshouse Rd
Northampton, PA
Access Financial Markets
(717) 569-7072
Lancaster, PA
Carson Consumer Discount Co
(570) 297-2157
37 Canton St
Troy, PA
Marquette Savings Bank
(814) 459-2005
2304 W 12th St
Erie, PA


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.

3. Factoring versus Bank Loan

Factoring versus Bank Loan Many small businesses in Pennsylvania 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.

5. Featured Local Company

AmeriValue

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

(866) 499-0922
Philadelphia, PA
Business Cash Advance

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

Regional Articles
- Accounts Receivable Financing Aliquippa PA
- Accounts Receivable Financing Allentown PA
- Accounts Receivable Financing Allison Park PA
- Accounts Receivable Financing Altoona PA
- Accounts Receivable Financing Ambler PA
- Accounts Receivable Financing Apollo PA
- Accounts Receivable Financing Aston PA
- Accounts Receivable Financing Beaver Falls PA
- Accounts Receivable Financing Beaver PA
- Accounts Receivable Financing Belle Vernon PA
- Accounts Receivable Financing Bellefonte PA
- Accounts Receivable Financing Bensalem PA
- Accounts Receivable Financing Berwick PA
- Accounts Receivable Financing Bethel Park PA
- Accounts Receivable Financing Bethlehem PA
- Accounts Receivable Financing Birdsboro PA
- Accounts Receivable Financing Bloomsburg PA
- Accounts Receivable Financing Blue Bell PA
- Accounts Receivable Financing Boyertown PA
- Accounts Receivable Financing Bridgeville PA
- Accounts Receivable Financing Broomall PA
- Accounts Receivable Financing Bryn Mawr PA
- Accounts Receivable Financing Butler PA
- Accounts Receivable Financing Camp Hill PA
- Accounts Receivable Financing Canonsburg PA
- Accounts Receivable Financing Carlisle PA
- Accounts Receivable Financing Carnegie PA
- Accounts Receivable Financing Chalfont PA
- Accounts Receivable Financing Chambersburg PA
- Accounts Receivable Financing Chester PA
- Accounts Receivable Financing Clairton PA
- Accounts Receivable Financing Clarks Summit PA
- Accounts Receivable Financing Clifton Heights PA
- Accounts Receivable Financing Coatesville PA
- Accounts Receivable Financing Collegeville PA
- Accounts Receivable Financing Connellsville PA
- Accounts Receivable Financing Conshohocken PA
- Accounts Receivable Financing Coraopolis PA
- Accounts Receivable Financing Cranberry Twp PA
- Accounts Receivable Financing Darby PA
- Accounts Receivable Financing Dillsburg PA
- Accounts Receivable Financing Downingtown PA
- Accounts Receivable Financing Doylestown PA
- Accounts Receivable Financing Drexel Hill PA
- Accounts Receivable Financing Du Bois PA
- Accounts Receivable Financing East Stroudsburg PA
- Accounts Receivable Financing Easton PA
- Accounts Receivable Financing Elizabethtown PA
- Accounts Receivable Financing Elkins Park PA
- Accounts Receivable Financing Ellwood City PA
- Accounts Receivable Financing Emmaus PA
- Accounts Receivable Financing Ephrata PA
- Accounts Receivable Financing Erie PA
- Accounts Receivable Financing Exton PA
- Accounts Receivable Financing Feasterville Trevose PA
- Accounts Receivable Financing Gettysburg PA
- Accounts Receivable Financing Gibsonia PA
- Accounts Receivable Financing Glenshaw PA
- Accounts Receivable Financing Glenside PA
- Accounts Receivable Financing Greensburg PA
- Accounts Receivable Financing Hanover PA
- Accounts Receivable Financing Harleysville PA
- Accounts Receivable Financing Harrisburg PA
- Accounts Receivable Financing Hatboro PA
- Accounts Receivable Financing Hatfield PA
- Accounts Receivable Financing Havertown PA
- Accounts Receivable Financing Hazleton PA
- Accounts Receivable Financing Hershey PA
- Accounts Receivable Financing Hollidaysburg PA
- Accounts Receivable Financing Hummelstown PA
- Accounts Receivable Financing Huntingdon PA
- Accounts Receivable Financing Huntingdon Valley PA
- Accounts Receivable Financing Indiana PA
- Accounts Receivable Financing Irwin PA
- Accounts Receivable Financing Jeannette PA
- Accounts Receivable Financing Jenkintown PA
- Accounts Receivable Financing Johnstown PA
- Accounts Receivable Financing Kennett Square PA
- Accounts Receivable Financing King Of Prussia PA
- Accounts Receivable Financing Kingston PA
- Accounts Receivable Financing Kittanning PA
- Accounts Receivable Financing Kutztown PA
- Accounts Receivable Financing Lancaster PA
- Accounts Receivable Financing Langhorne PA
- Accounts Receivable Financing Lansdale PA
- Accounts Receivable Financing Lansdowne PA
- Accounts Receivable Financing Latrobe PA
- Accounts Receivable Financing Lebanon PA
- Accounts Receivable Financing Lehighton PA
- Accounts Receivable Financing Levittown PA
- Accounts Receivable Financing Lewistown PA
- Accounts Receivable Financing Lititz PA
- Accounts Receivable Financing Lock Haven PA
- Accounts Receivable Financing Manheim PA
- Accounts Receivable Financing Marcus Hook PA
- Accounts Receivable Financing Mc Kees Rocks PA
- Accounts Receivable Financing Mckeesport PA
- Accounts Receivable Financing Meadville PA
- Accounts Receivable Financing Mechanicsburg PA
- Accounts Receivable Financing Media PA
- Accounts Receivable Financing Monroeville PA
- Accounts Receivable Financing Morrisville PA
- Accounts Receivable Financing Nazareth PA
- Accounts Receivable Financing New Castle PA
- Accounts Receivable Financing New Cumberland PA
- Accounts Receivable Financing New Kensington PA
- Accounts Receivable Financing Newtown PA
- Accounts Receivable Financing Newtown Square PA
- Accounts Receivable Financing Norristown PA
- Accounts Receivable Financing North Wales PA
- Accounts Receivable Financing Oil City PA
- Accounts Receivable Financing Palmyra PA
- Accounts Receivable Financing Perkasie PA
- Accounts Receivable Financing Philadelphia PA
- Accounts Receivable Financing Phoenixville PA
- Accounts Receivable Financing Pittsburgh PA
- Accounts Receivable Financing Pittston PA
- Accounts Receivable Financing Pottstown PA
- Accounts Receivable Financing Pottsville PA
- Accounts Receivable Financing Punxsutawney PA
- Accounts Receivable Financing Quakertown PA
- Accounts Receivable Financing Reading PA
- Accounts Receivable Financing Red Lion PA
- Accounts Receivable Financing Royersford PA
- Accounts Receivable Financing Scranton PA
- Accounts Receivable Financing Selinsgrove PA
- Accounts Receivable Financing Sewickley PA
- Accounts Receivable Financing Shippensburg PA
- Accounts Receivable Financing Southampton PA
- Accounts Receivable Financing State College PA
- Accounts Receivable Financing Stroudsburg PA
- Accounts Receivable Financing Telford PA
- Accounts Receivable Financing Uniontown PA
- Accounts Receivable Financing Upper Darby PA
- Accounts Receivable Financing Verona PA
- Accounts Receivable Financing Warminster PA
- Accounts Receivable Financing Washington PA
- Accounts Receivable Financing Wayne PA
- Accounts Receivable Financing Waynesboro PA
- Accounts Receivable Financing Waynesburg PA
- Accounts Receivable Financing West Chester PA
- Accounts Receivable Financing West Mifflin PA
- Accounts Receivable Financing Wexford PA
- Accounts Receivable Financing Whitehall PA
- Accounts Receivable Financing Wilkes Barre PA
- Accounts Receivable Financing Williamsport PA
- Accounts Receivable Financing Willow Grove PA
- Accounts Receivable Financing York PA
Related Local Events
Your Budget-A Profit Plan for your Business
Dates: 9/23/2008 - 9/23/2008
Location: Saint Vincent College
Latrobe PA
View Details

Fundamentals of Finance and Accounting for Non-Financial Managers
Dates: 9/22/2008 - 9/24/2008
Location: Top of the Tower
Philadelphia PA
View Details

China: Threat or Opportunity
Dates: 8/1/2008 - 8/1/2008
Location:
Cranberry Twp PA
View Details

The 2008 CFO of the Year Award
Dates: 7/17/2008 - 7/17/2008
Location: Sheraton City Center Hotel
Philadelphia PA
View Details

Franchise Your Business
Dates: 6/25/2008 - 6/25/2008
Location: TBD
Philadephia PA
View Details
Rate Article
     
Articles Insider

Rss   Delicious   Digg   Add To My Yahoo   Add To My Google   Bookmark   Search Plugin

Topics:
Advertising Entertainment Home Electronics Software
Business Services Family Home Services Technology
Career Fashion Internet Telecommunications
Cars Financial Services Legal Trade Shows
Computer Hardware Franchise Miscellaneous Travel
Construction Health Nightlife Weddings
Education Holidays Online Database World History
Educational Content Home Appliances Real Estate Resources