Tag Archives: Finance

Benefits Of Using Accounts Receivable Loans For Businesses

Christine Evans/ June 16, 2017/ Finance/

Businesses operations require a continuous flow of cash to facilitate the various needs. Cash flow is not always smooth and necessitates looking for alternatives like taking bank loans, sourcing for investors, and getting accounts receivable loans. Account receivable loans are also referred to as account receivable factoring or invoice factoring. They involve the sale of invoices to factoring companies which will do the debts collection.

The selling company gets a percentage of the invoice amount upfront, mostly 70% to 90% and once the factor does the collection, they get the remaining amount less the factors’ commission. In the case of any dishonored invoice, the selling company bears the burden. This article highlights the key benefits of using accounts receivable loans to businesses.

Benefits of using account receivable loans for business

Smooth business operations

fghfhgfgfhgfhThe business is not interrupted by cash flow issues if it has some outstanding invoices that are from creditworthy clients. It gets into an arrangement with a factoring company and gets the needed cash against those invoices. In this way, business operations run smoothly. Customer loyalty and the positive image of the business are maintained. Business is also able to concentrate on its core activities, be it production or whatever it is, without having to spend a lot of time dealing with financing issues.

Collateral free and convenient

The accounts receivable factoring does not require collateral in the form of business assets such as ownership document for land or vehicle. This makes it an easy financing method for small businesses without many assets to fix as collateral. It is also convenient as it involves the factoring company obtaining copies of outstanding invoices and delivery documents to support the invoices.cash is advanced as per the agreed discounting rate after the financing company conducts some due diligence. Cash may be availed in a period as short as 48 hours.

Great bargain for obtaining financing

Invoice factoring has a low cost compared to most financing options like bank loans. The amount charged by the factoring company is quite low considering the trouble of collecting the debts is transferred to them, and money is availed upfront. The rates of this method also differ from one factoring company to another hence the company seeking finance can shop around and get a good deal. Business may also get good margins by meeting sudden demands which it may not have managed to meet if it did not use invoice factoring. This further lowers the cost of finance.

Business has free cash for other needs

gfhgfhhfghfhfghgfhBusinesses may employ invoice factoring to service its next order thus having some free cash that it may put into capital expenditure whose returns are not immediate or not realized in the short term. Also, businesses have free cash to meet some needs that may not have been foreseen. These include court cases, sudden employee demands or marketing campaigns to counter competitors.

Generally, accounts receivable loans are a great financing option because it allows firms to operate smoothly without cash problems and it does not require collateral. The method is convenient and cheaper and allows business to have free cash for emergencies.…

Flexible Finance from Merchant Money

Christine Evans/ June 7, 2017/ Finance/

Merchant money provides loans to small businesses. Their finance solutions are fast and flexible. They offer business loans and pay as you trade. The application process is considered quick and straightforward.

Features

Application process

The process of getting a loan is simple. It involves only three basic steps. The first step is an njkmbvxzzapplication. Application entails only two further steps. The application process involves filling a form. The form has very simple requirements which can be completed in five minutes. Basing on your form, your lenders will make an accurate principled decision

The second step is fast truck funding. You get to this step after successfully completing the initial step. In this step, you will be provided with log in details. The purpose is to upload any additional documentations. The lending experts will review the other documentation.

The final step is instant money transfer. Getting to this level means you have been approved. Approval takes less than 24 hours after the first steps. The loan will be deposited to your account within two hours. The whole application process can happen within a day. It’s the simplest way to acquire a loan.

Merchant money finance products

Merchant money offers two financial products. The products are business loans and pay as you trade. Business loans are offered up to 100,000 euros. Pay as you trade is up to 50,000 euros. Their primary objective is facilitating growth in companies. Due to that, there are no application fees and no obligations. Their pricing is also fast and transparent.

The difference in merchant money

Getting a loan in merchant money doesn’t require a business plan. Their process is simple you don’t even need an appointment. Their loan terms are affordable, flexible and transparent. They have a 24-hour approval process. A provisional answer takes only 20 minutes. In 24 hours you are guaranteed a final answer. In 2 hours you will already have your loan in the bank.

Interest paid

jhjhjhjhjhjhThere are no fees and penalties for early settlement. Interest is only paid in outstanding loan amounts. The loan terms are also sufficiently flexible. You get to agree on the loan terms with them. The loan terms will be made to suit your credit profile. Your ability to repay comfortably is highly considered. Their application is instant. You can make swift decisions in an online lending platform. They also provide financial advice to small businesses.By understanding their client needs, they can predict success

Merchant money cares about small business growth. They consider themselves investors rather than lenders. They foresee growth of small business to large business. They ready to help any business grow.…