Receivables Financing: The Ultimate Guide
Receivables financing is one way for businesses to unlock money tied up in accounts receivable (AR), hence getting a cash injection into the company.
A cash flow loan is a term loan provided based on your company’s past and forecasted cash flow. It is typically used by e-commerce businesses to fulfill working capital needs, such as payroll and inventory.
As a form of unsecured loan, cash flow loans do not require pledging of tangible assets as collateral. You may, however, be required to sign a personal guarantee over the loan.
Cash flow loans are suitable for e-commerce companies which are currently in short supply of working capital, but expect strong cash flows in the future.
For the following types of businesses, cash flow lending could also give you access to capital which may not be available via other routes:
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Receivables financing is one way for businesses to unlock money tied up in accounts receivable (AR), hence getting a cash injection into the company.
This article explains what invoice financing is, how it works, the types and costs, as well as its pros and cons.