If you are like many businesses, you need to purchase materials and products to fill orders and serve clients. Unfortunately (as many applicants on Shark Tank say), it can be hard to pay for the materials needed to fill a large order until you have received payment for the large order. So what can you do?
Essentially, a qualified commercial lender can connect you with a business who buys your AR accounts from you for a discount. You receive cash right away and they will collect payment from your client.
This secures funds that you use to pay for the materials you need to be able to fill orders and do not have to worry about sprint time, resources and energy collecting payment from clients.
You will not receive the full amount of your AR invoices when you do this but you also do not have a loan that is costing you interest so it can be a valuable option if the math works favorably.
Read a more in depth explanation in our earlier blog posting.