Improved Cash Flow Through Accounts Receivable
One of the biggest bottlenecking events that companies experience is when the work is done and the money is made, but before the check from your customers clears. That leaves them in a situation where the money needed to keep working is not there and future clients become affected. When these cycles go uncorrected, it can even result in the loss of accounts or opportunities.
Financing your accounts receivable is a great way to sidestep those issues while also streamlining your operations. That is because accounts receivables financing involves getting cash quickly based on money you are already owed, and to do that, Eighth Street Capital takes on the burden of collecting on those accounts.
How AR Financing Works
The step by step procedure is simple. Our factors look over your receivables and calculate an advance number based on a fraction of their worth. Then, as the money comes in, those agents collect on your behalf and subtract out the advance and a service fee before passing the remainder to you. The result is quick cash without a loan, and without worry about whether the accounts pay or not.
Benefits of Accounts Receivable Financing:
- Fast approval—usually within 24 hours
- Does not affect your company’s overall debt portfolio because it is not a loan
- No loss of equity in the company
- Insurance against non-paying accounts
- No recourse on the advance if the accounts do not pay
- Flexible cash for any purpose