Every company deserves to be paid for its efforts, but when it relies on invoices, that doesn’t always happen. While essential for many industries, this payment system can produce unreliable revenue. However, accounts receivable financing can shorten the wait and help you stabilize your income.
Invoice financing, sometimes referred to as accounts receivable financing, is a method used by businesses to borrow money against the amounts due from customers. In this process, a company sells its outstanding invoices to a third-party financial institution known as a factor. The factor advances a significant portion of the invoice value to the company upfront and holds the remaining amount as a fee until the invoice is paid in full by the customer. Once the customer pays the invoice, the factor releases the remaining amount to the company, deducting a fee for their services. This type of financing helps businesses improve their cash flow by accessing funds tied up in unpaid invoices. They do the leg work for you.
Beewise Capital is excited to help businesses achieve their goals. Contact us today to inquire.