Better Alternatives to Accounts Receivable Loans
Stop us if this sounds familiar; let’s say you’re looking to fund a new project or cover operating expenses but the majority of your capital is tied up in inbound cash that just hasn’t gotten there… yet.
Many business owners run into these issues when business is going well – so well in fact that most of your money has yet to make its way back into your bank account. Having high demand and record sales is often considered a good problem to have. However, your business cannot truly thrive and take advantage of these exciting opportunities without adequate working capital.
Accounts receivable loans from traditional financial institutions enable you to parlay your current incoming payments to quick working capital. These funds can be used for staffing funding or any other purpose your company has.
The process is simple: you receive the cash flow your business needs to keep making sales, and a portion of your incoming payments are paid back to your lender.
This type of loan is best for business owners who’s services include:
Goods and/or services taking weeks or months to complete Sellers of artisan goods require a large investment of both time and capital purchasing large amounts of inventory in preparation for specific times of the year.
Accounts Receivable Funding
We understand the need business owners have to make the best choice for their company when it comes to making a funding decision. In an effort to always make it easier on business owners and managing partners, we wanted to share a list of businesses that we’ve provided more appropriate business funding alternatives to accounts receivable loans:
- Portrait artists
- Residential Contractors
- Independent groceries
- Hobby shops
- Butcher shops
Funding Alternatives for Receivable Loans
While large financial institutions are known for their low approval rates and excessively long wait times, our funding alternatives feature an easier approval process compared to business loans. They’re designed to be convenient and flexible for small business owners.
The forms required to apply for an accounts receivable loan at large banks can be dozens of pages long and take hours to complete with confusing terms and conditions. Our application for an unsecured working capital advance, which is a better alternative to a traditional loan, takes minutes to complete. As a member of the Responsible Business Lending Coalition, we strive to make our application and terms as easy to understand as possible so that there are never any surprises in your funding agreement.
Many banking institutions routinely make loan applicants wait 90 days to learn if they’ve been approved with some applicants reporting waits as long as six-months. Our applicants are notified of their approval within hours, in fact, most users wait just 60 minutes to be approved for funding.
Once your funding program is approved, our funding alternatives to short-term small business loans can arrive in your bank account by the end of the next business day. Many business owners go from application to cash in their hand in under 24 hours.
Our funding alternatives to accounts receivable loans may not be appropriate for every type of small business. If you’re on the fence about if this type of financing is the best option for you, give one of our business advisors a call to discuss funding options.
To learn more about Fast Capital 360’s fast, unsecured funding alternatives to accounts receivable loans, give us a call today at 1-800-735-6107 or contact us online.