By Aiden ArmstrongNew Orleans, LA has come through a lot since Hurricane Katrina and is once again a vibrant and booming city with lots of new businesses and services as well as the re-establishment of older business in the community. To help these businesses with cash flow issues, financing accounts receivable companies can provide interim funds between invoicing and final payment.
Most small to mid-sized businesses have turned to financing accounts receivable companies at one time or another. These companies purchase existing outstanding accounts receivables, or invoices, providing immediate funding that are very different than a bank loan.
In fact, when using financing accounts receivable companies there is no loan, no repayment, and no interest, rather there is a low rate charged for the service based on the total amount of the invoices.
Applying and Payment
To apply for financing accounts receivable with United Capital Funding a business has to have at least $25,000 or more in outstanding invoices for goods and or services. A simple online application, which is free, is completed byyour company on our website.
As this is not a loan, there is no need for a personal guarantee and the business will not need to go through a lengthy credit check. Instead, the factoring company processing the application will determine the creditworthiness of the customers as they will be paying the invoice the factoring company willpurchase.
The Agreement
With a top factoring company, the business can utilize their factoring services as needed, and also terminate the agreement without any fees. The factor will offer competitive rates for their services.
The company providing the financing accounts receivable, upon approval of the application, will then deposit up to 90% of the value of the invoices into the designated account. This process takes just 24 hours, with approval of an application typically within 24 hours..
Once the customer pays the invoice to the factor, the fees are deducted and, if these is any residual amount, which will be deposited into the business’s account.
The money received from the financing accounts receivable company is yours to spend, as you need. This can cover your overhead, rent and payroll or even be used to buy materials or hire new employees to keep your New Orleans, LA business growing as opportunities arise.
