Invoice financing, also known as Accounts Receivable Factoring, is an excellent solution for companies needing cash flow. As an alternative to a traditional business loan, this fast and convenient process turns your accounts receivable (unpaid invoices) into cash as you need it. When you need short-term financial help with your business , Factoring may be a better option than a bank, SBA or small business loan.

Benefits of Accounts Receivable Financing with Applied Capital

• Increase your working capital
• Predict your cash flow with greater certainty
• No monthly loan payments
• Take advantage of trade discounts offered by suppliers
• Spend more time selling and less time managing your receivables

Factoring increases the working capital in your business. Funds are provided to you through an advance against your open accounts receivable (typically 70% - 90% of the face value of your invoices). If you factor all of the invoices that run through your business, you will always have this additional capital at work in your company instead of tied up in your accounts receivable. You are now in control of when you use that money. You're no longer limited by the date your clients decide to pay for the work you have already provided them.

As your accounts receivable base grows because of the increased working capital, your factoring financing availability grows automatically. Moreover, unlike a typical bank line of credit, you do not need to repay the line and have a 30 day "rest" period each year before drawing on the line again. Factor when you want to, or all the time; it's your decision. Also, you do not need to be approved each year for additional funding. And since your factoring line is a function of your accounts receivable growth, increases in your availability are automatic.