What is Accounts Receivable Financing?
If a business' cash flow is inadequate because of delinquent accounts or other similar circumstances, receivables can be financed.
One of the advantages to this type of financing is that it will free capital from the waiting period required by normal trade terms. This allows a business' capital to be more profitably employed for other purposes.
The accelerated cash flow can result in any combination of tangible results, such as increased volume, earning of trade discounts on purchases from suppliers, or the ability to make more advantageous purchases by having available cash. |