(866) 480-2611

When Can Your Company Use Accounts Receivable Funding?



When can you company use accounts receivable funding to help the company meet its financial obligations? While not every company will qualify for this type of financing, a large majority of them will as long as there are consistent orders coming in. If you are running a small business or are having trouble making ends meet, is accounts receivable funding right for your company?


How Much Money Does Your Company Bring In?


A factoring company is not going to want to help if there isn't enough revenue coming in. This is because your accounts receivable are going to be used as collateral to secure the advance funding. In most cases, you are going to be charged a fee of up to 15 percent of the total value of the order that you are using as collateral. Therefore, there should be enough of a profit left over after the advance has been granted to satisfy both your company and the factoring company.


Does Your Company Have Good Credit?


While the credit score of a company isn't as important for a secured loan, it does matter to a certain extent. It is also important that your customers have good credit as well. If there is a chance that your customers won't pay, there is a chance that the account receivable advance will not be repaid. Therefore, a company that uses such a loan should have a track record of paying its bills as well as receiving payment from customers.


Most Loans Are Made to Established Companies


Many account receivable advances are given to companies that have been in existence for at least a year or two. It is important that a company has a history of doing business and shows signs of growth. However, this doesn't mean that your company should shy away from asking for the money. If the company secures a big order right away or has a lot of initial capital reserves to further secure a loan, it may be possible to get such a loan even if the company has not been around for more than a few months.


It is important that your company has access to the money it needs to keep growing. An accounts receivable advance from a company such as AFN could be exactly what your business needs to go from merely making ends meet to become a thriving company that is a major player in its industry.


Accounts Receivable
Bad Credit Business Loan 1
Bad Credit Business Loans
Bank Loan
Borrowing Money
Business Capital
Business Cash Advances
Business Debt
Business Equity
Business Financing Services
Business Leadership
Business Line of Credit
Business Loan
Business Loan Bad Credit
Business Loans
Buying Equipment
Cash Flow
Child Care
Construction Factoring
Credit Card Factoring
Credit Reports
Credit Utilization
Equipment Finance
Equipment Leasing
Equipment Purchase
Factoring Accounts Receivable
Flexible Factoring Options
Franchise Funding
Freight Factoring
General Finance
Green Business
Hardware Stores
Industry Specific Articles
Landscape Contracting
Late Fees
Medical Accounts Receivable
Medical Supply Providers
Merchant Advance
Merchant Cash Advance
Merchant Cash Advance Loans
Merchant Finance
Merchant Loan
Mobile Payment Solutions
New York Business Loan
Real Estate Management
SBA Loan
Small Business
Small Business Credit
Small Business Credit Line
Small Business Development Services
Small Business Finance
Small Business Financial Tips
Small Business Investors
Small Business Line of Credit
Small Business Loan
Small Business Loans
Small Business Marketing
Small Business Sales
Small Business Sales
Starting a Small Business
Startup Financing
Trucking and Transportation
Unsecured Business Lines of Credit
Unsecured Business Loans
Unsecured Business Loans for Bad Credit
Unsecured Credit Line for Small Businesses
Unsecured Financing
Unsecured Line of Credit
Unsecured Lines of Credit for No Credit Businesses
Unsecured Loans for Bad Credit

Nurturing Business, Cultivating Hope

Putting Our Clients First Since 2008.
Become A Partner
Partner with us to reach potential merchants using our patented technology on the Advance Funds Network platform.
464 Kings Highway Brooklyn, NY 11223
1633 Rt 35N Unit 4 Oakhurst, NJ 07755
5858 Dryden Place Carlsbad, CA 92008 Suite 238
2967 Dundas St. W. #220D Toronto, ON M6P 1Z2
(866) 480-2611
Important Information About Procedures for Opening a New Account
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.

What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.
© Advance Funds Network 2023. All rights reserved.