10 Questions: Is Accounts Receivable Financing right for your business?
When considering if Accounts Receivable Financing is the right solution for obtaining working capital for your business, ask yourself these 10 questions:
- Could you increase sales with more working capital?
- Do you have to scramble at the end of the week or month to cover your payroll expenses?
- Is your business in growth mode?
- Have you been turned down by a bank for financing?
- Do you have projects that you could be bidding if you were assured the cash flow required would be available to you?
- Do you have challenged financial history or personal credit issues?
- Do the majority of your clients pay over 30 days?
- Do you have to be selective in choosing customers because they do not pay on time?
- Does your business rely heavily on inventory, requiring large capital expenditures to fulfill orders?
- Do you want a minimal amount of required management of cash, instead of the constant day-to-day advances of a line of credit?
If you answered YES to one or more of the above questions, then you are definitely a candidate for Accounts Receivable Financing.