Business Cash

Benefits of Non-Recourse Accounts Receivable Financing vs. Bank Loans

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 bank loans were considered the easiest, least expensive source of business capital. However, it is difficult to qualify for bank loans, or too small of a credit line is offered. Plus the financing is often secured by entrepreneurs’ personal assets. In contrast to bank financing, non-bank financing such as receivable financing immediately increases cash flow without creating debt on the balance sheet. This type of non-bank financing is more flexible and the main qualifying factor is the creditworthiness of its customers, not the credit of the entrepreneur.

In many ways, non-recourse accounts receivable financing is considered more beneficial as compared to bank loans:

• Non-Recourse – Credit protection is offered
• Perfect for start-ups
• Fast funding for Local, State and Federal Government contracts
• Solution for funding with IRS issues
• Direct funding source for over 20 years
• Great for the non-bankable and under-banked

BusinessCash has been providing Non-Recourse Accounts Receivable Financing for over 20 years. To see how we can help your company

Call 888-400-5931, use our Contact Form or complete our fast, secure Business Funding Application.

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