Austin, TX is a business friendly city in the Lone Star state with a growing market in all industries, including construction, manufacturing and IT businesses. For small, medium and large companies in any industry that need to cover cash flow gaps between invoicing and payments, financing accounts receivable is a very smart option.
Factoring companies financing accounts receivable provide quick access to funding that is not a loan, not a debt and that doesn’t count against the business’s credit in the way a traditional bank or small business loan will. Instead, the factoring company purchases specific accounts receivables determined by the business, providing funding based on a percentage of the total of the invoices.
The factoring company manages the invoices, collecting payments, deducting their pre-set fees, and providing the Austin, TX company with any residual funding. The pressure is off the business to manage collections, plus they have the funding available to take on the next big project, contract or opportunity.
The Application Process
When working with an established, experienced factoring company offering financing accounts receivable, the process is very user-friendly. It starts with a simple online application for the funding, with no need for a personal guarantee.
Within 24 hours the company offering financing accounts receivable will contact the Austin, TX company for approval, then within a few business days, typically not more than seven, the funds will be wired to the selected bank. This does not make sense. Application process is 5-7 business day, funding in as little as 24 hours.
The Fees
Different factoring companies have different fee structures for financing accounts receivable in Austin, TX. The best companies have very competitive rates and don’t charge any additional fees for verifications, due diligence documentation or even for termination.
There are no long-term contracts and no obligation, but there will be full-service support, online access to your account, and help available from financial professionals. These additional perks of this funding option, combined with the speed of access to the cash, allows a business to have the financial ability to take on additional work, invest in inventory and supplies, or meet payroll even when their customers may not have paid their invoices.
It is important to carefully consider your options and compare the benefits and advantages of financing accounts receivable in Austin, TX. For any business with closed invoices pending payment and opportunities to expand it is certainly a better option than the long process of obtaining a business loan or using a line of credit.
