Accounts Receivable Funding

Accounts receivable funding helps businesses raise a working capital by using their outstanding invoice as the collateral. Businesses often allow a considerable portion of their sales on credit. When a lot of transactions happen on credit, it might result in cashflow shortage and affect the smooth functioning of the organization. In such cases, companies can borrow money depending on the value of the receivables. The company seeking finances commits some or all of its outstanding invoices to the funders. Company will receive a fraction (up to 90%) of the value of the receivables from the financiers. But the company will still be in charge of the receivables.

Waiting for unpaid invoices can put your business in a difficult position. With accounts receivable funding, you can get quick access to a working capital. An easy alternative to traditional loans, accounts receivable financing doesn’t require any other valuable assets apart from your receivables, to secure the transaction. This fast and easy funding option can be utilized by both small and big businesses. At The Merchant Marketplace, we help you manage your receivables smartly and get the maximum benefits through receivable funding.