What is accounts receivable financing?
Accounts receivable financing is an alternative method for businesses to receive payment for outstanding invoices due. It can be an excellent way for organizations to improve their cash flow, or make up for unexpected expenses, even if their invoices are going unpaid.
With accounts receivable financing, a business takes the unpaid invoices due to it and sells those invoices to a third party. The third-party pays less than their face value – usually around 80% – but the seller gets cash upfront. Then the third party takes full ownership of those invoices and the debts owned on them and takes responsibility for collections as well.
Accounts receivable financing is a safe and proven alternative to receiving small business loans, with no concerns about interest rates or repayment terms. It simply turns unpaid invoices into cash.Contact the team at Camel Financial for more information about accounts receivable financing solutions.