Accounts Receivable Funding is a way to ensure your business has the cash it needs to operate and grow. It works by tapping into the money hidden in your accounts receivable ledger.
If you have invoiced other businesses and are waiting for payment, this is effectively usable credit and it is a shame to borrow at high interest to make ends meet when you technically have the money on your balance sheet. So instead of entering into a term loan requiring regular repayments, a business can use its accounts receivable book to get money upfront, instead of waiting weeks or months for an invoice to be paid. Businesses can meet many of their funding needs, including major investments, using this flexible form of finance.