Accounts receivable financing (A/R financing), sometimes known as a ledgered line of credit or invoice financing, is a great solution for businesses that need more funding that is not available from traditional lenders. Many companies need additional cash flow to support seasonal demands, growth, business opportunities, or solve a short-term cash need. Commercial Capital’s accounts receivable financing provides your business with quick, flexible funding that will give your business the opportunity to grow, restructure, take advantage of supplier discounts, hire additional employees, or even to fund payroll. With our accounts receivable financing options, you can access funds without having to give up equity in your company, and it is less restrictive and expensive than equity financing. A/R financing can increase or decrease based on your current business size and needs, allows you to gain administrative support to manage your receivables without additional staff, and gives you access to cash when you request it (based on your eligible accounts receivable).
How Accounts Receivable Financing Works
After you invoice your customer for goods or services completed you provide Crestmark with a copy of the invoice and supporting documentation. Crestmark may then advance up to 90% of the eligible invoice to you, often within 24 hours. Our professional and efficient invoice management team follows up to help ensure that your customer pays according to your invoice terms. Once we receive your customer payment, we’ll release the remaining 10% to you, less an administrative fee. And, with our timely detailed web-based reporting, you can check to see who has paid and who has not 24/7.
This accounts receivable financing process will free up valuable time and allow you to do what you do best, service your customers and generate new business. Receivables management is proven to shorten payment turnaround time, which in turn, ensures better cash flow for your company and reduces interest expense. It also facilitates increased communication with your customers in a positive and professional manner, thus allowing you to stay on top of damaged goods, lost shipments, misplaced or disputed invoices, or keeping payments current.
And, because this form of financing allows you to access more cash as your business grows, or less if you need less, you can ask us to either ramp up, or scale back as you deem best for your business.
Accounts Receivable Financing Highlights
|Primary Transaction Size||Start-ups to $10 Million|
|Business Credit Type||Accounts Receivable Invoice Financing|
|Advance Formula||Up to 90% of eligible Accounts Receivable|
|Advance Frequency||Weekly (or as often as daily)|
|Services||Customer credit reviews for new and existing customers
Collection services (in some cases)
Customized management reports
|Accounts Receivable Financing Benefits||Are flexible, can increase as your business grows, and can decrease when you choose
Make it easy to transition back to conventional banking
Make paying off loans and making payroll worry-free
Allow you to meet seasonal demands
Give you the opportunity to reinvest in business and fund marketing to grow your business
Receivables management allows you to focus on your core business
Allows you to take advantage of volume or early payment purchase discounts
|Crestmark’s A/R Benefits||Competitive pricing
Fast response time including:
Proposal turnaround within one business day
Closing in as early as 7-10 business days
Cash for invoices within one business day
Is A/R Financing The Right Solution For Your Business?
Your business is unique with working capital needs all its own. Our professional, experienced Business Development Officers will work with you to understand what accounts receivable financing solution best fits your business and cash flow needs, and a team of financing specialists will create a working capital solution specialized for you.