Turn your unpaid invoices into cash. A/R financing provides you with easy access to working capital. Use it to grow your business, pay immediate business expenses, benefit from discounts with your suppliers and reinvest profit in new projects.
What Is Accounts Receivable Financing?
Accounts receivable financing, or factoring, turns your unpaid invoices into cash. It is based on your customer’s ability to pay, not yours. The financing available can go up or down based on your needs and allows you to easily manage your A/R. You get to start and stop on your own terms. No more collecting payments from customers – we’ll take care of that. Plus, it’s the only form of financing that truly grows with your sales. More business equals more invoices, which means more availability.
How Accounts Receivable Financing Helps Your Business?
A/R financing gives businesses the ability to ensure growth without diluting equity or incurring debt. Having a stable source of working capital is vital to any business in order to pay employees, purchase new equipment, meet seasonal demands, and more.
A significant difference between A/R financing and a bank loan is with A/R financing, a company uses its customers’ credit strength, not its own as support for funding. With a bank loan, credit is typically based on assets, equity, profitability, cash flow, and liquidity, thereby limiting the amount of funding. Under an A/R facility, available funding is limited only by the amount of your company’s receivables, which allows it to meet operating demand and provide for future expansion.
Tholons Capital Offers
- Higher advance rates than banks on eligible A/R
- Ability to use in conjunction with current bank lines
- Interactive web portal that allows you to follow your invoice in real time
- Competitive rates with deep resources from Tholons Capital Inc.
Why Use Accounts Receivable Financing?
- Expansion and growth
- Slow paying customers
- Maximize your access to cash flow to get an important contract
- Maxed-out credit lines
A/R Financing Made Simple
- Step 1. Client sells product and/or service and submits invoice to us.
- Step 2. We confirm the invoice and advance 80-90% of the value of the invoice the same da
- Step 3. Your client send the invoice payments to a lockbox owned by us, but payable to you.
- Step 4. When payments are received, you get the remainder of the invoice amount, less the original advance and fee.