Many Non-Recourse Accounts Receivable Financing is the sale of a companies receivables at a discount in exchange for immediate cash. The percentage of working capital a company can receive upfront ranges from 70-92%. AR financing can be a perfect solution for many industries including textiles, to wine distributors to start-ups. Any company that is non-bankable AR financing improves cash flow and accelerates growth and evades debt burden.
There was a time when many consider bank loans as the easiest, least expensive source of business capital. However, it is difficult to qualify for bank loans, or the offer is too small of a credit line. Plus the financing is often secured by entrepreneurs’ personal assets. In contrast to bank financing, non-bank funding such as receivable financing immediately increases cash flow without creating debt on the balance sheet. This type of funding non-bank is more flexible. The primary qualifying factor is the creditworthiness of its customers, not the credit of the entrepreneur.
In many ways, many consider non-recourse accounts receivable financing as a more beneficial option when one is comparing it to bank loans:
• Non-Recourse – Credit protection is offered
• Perfect for start-ups
• Fast funding for Local, State and Federal Government contracts
• A solution for funding with IRS issues
• A direct funding source for over 20 years
• Great for the non-bankable and under-banked