Accounts Receivable Financing
Helping you keep track of your cash flow.
Borrow As Needed
Our account receivable financing acts as an on-demand extension of your cash flow.
Flexible & Renewable
We provide same-day renewals and early pay off discounts for reduced interest.
Pay Only if Used
Get the entire amount needed in one-shot or use as needed. Secured options available.
Why use account receivable financing?
Every business owner aspires to grow and expand their company to the next level. One of several solutions for overcoming the problem is account receivable financing. It’s comparable to invoice finance, in which lenders can use their account receivables as income to aid with cash flow problems. Customers owe money that has yet to be paid; the amount owed is known as receivables. Because your firm will have money pouring in, but not into the bank account, it is less risky than a standard loan.
You’ll ultimately come across clients that pay late or not at all if you’re in business long enough. Bad debt occurs when a customer fails to pay and we are unable to collect their receivables.
Businesses that have been in operation for a long time may frequently estimate their total bad debts ahead of time to ensure that the accounts receivable displayed on their financial statements are not excessively high. They’ll do this by establishing an “allowance for uncollectible accounts.”
Invoice financing: It’s simple!
It takes just 5 minutes to fill out your application and just a few hours to get offers!
We help you compare your options with ease and always work to get you the most favorable terms.
Our advisors will make sure that the product you have chosen will suit your business needs best.
How to qualify for account receivable financing?
Account receivable financing can help a business when in need of an income but cash isn’t required. When used the right way, it can help set your business up for success.
Here’s what you’ll need to qualify:
- 3+ months in business
- $110K+ annual revenue
- 550+ credit score
What Is Account Receivable Financing?
ARF is also known as invoice finance and other terms.
A lender will provide you a proportion of your incoming invoices, up to 85%, in exchange for a fee. Until the vendor pays, you pay around 1% on the money owing. Some lenders, such as BlueVine, will not even do a credit check because they are paid by the company’s invoices and don’t want to take on too much risk by giving money.
A financer can advance you 100% of your outstanding invoices with account receivable financing because they are purchasing your future receivables. Instead of paying the lender back when the vendor pays, you pay the lender back weekly over a defined period of time until the advance is cleared when you use factoring. Some business owners prefer this since it eliminates the need to wait for customers to pay their debts, but it may mean that your funder collects straight from the vendor and you don’t see any of the money, putting further strain on cash flow if the repayment is not on your terms.
When purchasing your accounts receivables, this type of financing is used. The majority of these factoring companies will collect on your behalf from your consumers. Invoice finance lends you a percentage of your incoming invoices and collects the money from you immediately.
How to Qualify?
The major piece of information required for ARF is overdue bills, which is considered simple to get.
Despite the fact that this investment is asset-based, you will still need a robust firm with the best credit and revenue you can demonstrate. Depending on the supplier, these criteria may or may not influence the financing amount and charges.
Finding a provider who can sync with your accounting software is the quickest method to get accepted for invoice finance. Both FundBox and BlueVine use accounting software to calculate investment levels and underwrite a company. This allows for quick and easy online funding with minimal documentation.
Yes, funding can help fill cash flow shortages caused by missed invoices, but this program isn’t intended to cover delinquent vendors. Outstanding refers to work that has been completed but has not yet been paid, and does not necessarily imply that it is past due or late. While suppliers can be paid, if you have regular clients who pay on time, you should use this finance option. A funder is not geared to pursue clients on your behalf; you must ensure that your consumers pay.
Aside from the usual bank statements, credit score, and overdue invoices, each lender may request specific information. Invoice finance, on the other hand, is essentially based on one asset: invoices!
Where To Get It?
Receivable finance can now be done entirely online, thanks to accounting software. Transferring business information and gaining approval is a breeze if you perform all of your accounting online or through software.
Accounts Receivable Financing Compared To Other Options
Although ARF has a cost, some industries must pay to obtain cash today in order to maintain a steady cash flow. Invoice finance is quick and simple to get, and it can be used to overcome payroll shortfalls.
An invoice finance example might look like this, depending on rates and fees: If you have $100,000 in unpaid invoices, you will be given an advance of 85%, or $85,000. After a $3,000 processing fee and a 1% weekly fee, a vendor who delays two weeks to pay would cost you $2,000 plus the $3,000 processing fee, for a total of $5,000. This may or may not be a significant portion of your business to pay in order to get the money when it’s needed right away.
Improving your company’s working capital with invoice financing might help keep things running smoothly. Asset-based lending through invoice factoring only finances what your organization has coming in, so you’re not paying money to spend money.
Apply for funding with New York Tribeca Group to learn more about asset-based financing choices and to see if there is a financing solution that is a better fit for your company’s cash flow, assets, and term length requirements.
Got some questions?
This is a financing option that allows businesses to receive early payments on their outstanding invoices.
This allows companies to use their funding at their own pace. This helps improve business investments.
This is a preferred option for businesses because of the flexibility
They have fast approval, flexible credit, and minimal paperwork. But they also come with high interest rates, invoices are needed as proof as collateral, and their approval rates are low.
The best way to describe it is when a borrower leverages their assets to receive financing.
This is when the money that is owed from your customers can help you to qualify for a loan.
Truthfully, both options are similar funding solutions for companies in need of quick access to short-term funding expenses.
Both are costly but have a good amount of perks to even them out.
Filling out our online application only takes 5 minutes and we can find you the best options from there. If you’d like to give us a call and speak to one of our representatives, we’d be happy to answer any questions you may have.
We ask that you have the numbers for your credit score, length in business, and monthly revenue ready to go. These are the major factors we consider when making our decision.
Meeting minimal requirements still gives you a likely chance.
At NYTG, we want to be the best lender for you. We believe in getting you the best deal for your business.
It’s important to have a healthy business overall. A good credit score is important but it is not the major key to making or breaking your approval rate for an invoice