First Capital Business Finance
|Facility Size:||$10,000 – $15 million|
|Annual Sales:||$300,000 – $50,000,000|
|Advance Rate:||Up to 90% of eligible accounts receivable|
|Public or Private Companies|
Accounts receivable financing is a type of asset-financing arrangement in which a company uses its receivables — outstanding invoices or money owed by customers — as collateral in a financing agreement. In this agreement, an accounts receivables financing company, also called a factoring company, gives the original company an amount equal to a reduced value of the unpaid invoices or receivables.
Accounts receivable financing (aka AR financing) can improve your cash flow by providing capital against outstanding accounts receivables (invoices).
Once an invoice is produced, up to 90% of the invoice amount can be released as a loan. These funds can be released within 24 hours, and can provide immediate cash to the business.
As your customers remit payments, the balance of the loan will be paid down accordingly. The remaining 10% will then be paid to you, less the facility fee. This revolving access to capital can be very helpful for companies that are growing faster than expected.
First Capital Business Finance purchase order financing can help you if you have purchase orders that you cannot fulfill because you lack funds. As opposed to traditional bank finance, PO financing is easy to qualify for and can be set up quickly. The main requirement is that you have an order from a credit worthy commercial or government client.
Purchase order funding is a financing option that allows you to accept purchase orders, regardless of your current capital availability.
This means that all you need to do to obtain additional financing is to obtain orders from solid commercial or government customers. PO financing is an ideal tool for companies that sell third party products such as wholesalers, distributors and resellers, and companies that are growing quickly.
To qualify for purchase order funding, companies must meet these criteria:
If your company sells a service or manufactures goods directly (rather than out sourcing) please use our invoice factoring services.
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