If you are a small business owner, you should be well aware of the difficulty in finding enough money to support your business operations and deal with shortages in cash flow. When possible business financing like loans and credits are not enough, business owners will sometimes resort to accounts receivable financing. However, is this kind of business financing right for you and your business?
Accounts receivable financing refers to the selling of receivables, like outstanding invoices at a discounted price to another company that will assume all the risks on a receivable and provide instant cash to the business. The age of a receivable affects the value assigned to it. For example, receivables that are over 3 month
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