CBAC is an invoice financing exchange that can unlock immediate capital from your unpaid accounts receivable. Our innovative exchange has factoring companies compete to buy your invoices. This competition between factoring companies does the following:
Cash flow shortage usually occurs in businesses that offer credit facilities on a regular basis. If your business is at the risk of cash flow shortages, it is high time to consider the receivable financing services which come at very attractive and reasonable rates.
Accounts Receivable Financing is basically a form of business transaction that exchanges credit sales for immediate inflow of cash. The financial capability of the buyer determines the receivable exchange credit limit.
Accounts receivable financing is very convenient method of raising capital because it requires very little paperwork. Most of the financial institutions that offer this kind of financing solution base their decisions on the invoice process and the credit capability of the debtor.
Unlike other financing solutions it takes only days for an application to be processed; about 3 to 4 working days .Funds are also approved and released within a few days after making an application. Minimal underwriting is carried out in this financing method. On average, Accounts Receivable Financing charges rates of about 0.60% to 1.60% in a month.
Most companies that specialize in credit sales do not know that they can use their receivables or debtors accounts as collateral to receive funds. For a company to qualify for this form of financing, it has to be generating credit sales to buyers with good financial capability. Apart from this there are no other requirements needed for qualification into the receivable financing solution.
Receivable financing is accepted in companies that deal in products as well as services. An invoice has to be issued if the sale is to be binding; an invoice acts as proof of receivable amounts. Whether you are starting a company or trying to finance one that has a weak capital structure, you can get a receivable financing solution from a factoring company.
The age of an invoice has an influence on the amount of money you will qualify for; the older an invoice is the more risk a factoring company takes up by accepting it. A company will offer you more funds for your invoices if they are current and from buyers with a strong financial capability.
It is advisable to shop around for good discount rates and other financing cost to ensure that you minimize the accumulated cost of accounts receivable financing. If you are not careful, the accumulated cost might end up being the same as the cost involved in taking a loan.