Accounts receivable financing is a type of loan for securing fast working capital. This pro-business loan uses your company’s accounts receivable as collateral. By selling outstanding invoices at a discount to PMF Bancorp, we will provide your business with immediate cash flow.
As with an accounts receivable factoring line, the amount of value assigned to each account depends on the gross amount of the recievable, the credit worthiness and age of the specific receivables. Naturally, a more current invoice will be easier to process and provide the maximum value. The amount received from an accounts receivable financing line will be less than the total value of the invoices that your business assigns as collateral.
The repayment period for accounts receivable financing is generally shorter than for most other loans. Since payments are made as invoices are collected, the loan should be covered once all the invoices have been paid. In the majority of cases, the term for repayment is no more than 90 days.
The benefits for your business to use accounts receivable financing are clear and direct. By outsourcing your accounts receivable management to PMF Bancorp, you can free up collection resources to focus on other more profitable activities like marketing and selling your products. In addition, you can access working capital, enabling your business to overcome the problem of having the majority of your cash tied up in inventory.
As a direct result, you can focus on growing your business and bringing in more profit. Since accounts receivable financing does not require your business plan to be audited like traditional loans , it is a remarkably quick form of immediate cash flow for your company. By being proactive and taking advantage of our accounts receivable financing opportunity, you can go so far as to ensure the growth and even survival in periods of turbulent financial times .
Upon carefully considering your options, you will realize that the benefits of working with PMF Bancorp and financing your accounts receivable are too good to ignore in today’s challenging economic climate. Through this pro-business process, you can obtain working capital effectively and efficiently. At the same time, this initial financing choice can begin a working relationship with access to a variety of potential services. PMF Bancorp’s array of proactive services can help take your business to the next level of profitability and productivity. Beyond accounts receivable financing, these other services that we offers include factoring, leasing, trade financing, and credit insurance to assist your company’s growth.