Blogging On Finance

In a business owner’s journey, they will probably need to secure additional financing to help it operate or grow. Although you have previously qualified for a traditional business loan or worked with a generous investor to fund your initial startup, those options are not guaranteed to be available the next time you need financial assistance. That is when accounts receivable financing can come in handy.   What is Accounts Receivable Financing? Accounts receivable financing, also called invoice financing , provides your business with money based on the value of your outstanding invoices. Generally, accounts receivable are assets whose value is equal to the unpaid balances on the invoices (customers who have been billed but have not yet paid). If you were to obtain a business loan, finance companies would use unpaid invoices as collateral to calculate how much money to loan you, and they will charge you a fee based on the value of your outstanding invoices.   How Does Accounts Receivable