Overview of Accounts Receivable Financing
Account receivable financing is when a company receives capital based on issued invoices. Those invoices indicate completed transactions, but the payment is still pending. If a business needs an urgent flow of cash for any reason, this is where Intrepid's account receivable financing can help. With account receivable financing, you can easily unlock funds that are tied up in unpaid invoices.
Why Does Your Company Need Intrepid's Accounts Receivable Financing?
We understand the challenges that companies face due to cash flow issues. That is why Intrepid provides advance funds based on the value of your invoices. Account receivable financing helps you meet your regular obligations and allows you to focus on ways that expand your business.
Highly trained experts will evaluate your accounts receivable and guide you on improving your company's finances. Our financial program is designed to offer ongoing receivable asset purchases and get you upfront payment for your invoices.
What Working with Intrepid Looks Like?
- Finance your invoices in days not months
- No facility / Audit Fees
- 0% upfront fees to set up
- Lower credit score accepted
- Quick approval process
What Is The Accounts Receivable Financing Process?
You will get a simple and quick financing process with Intrepid's underwriting department. Our application process is purely online, so you don't have to worry about printing or filling out paperwork like in the case of a traditional bank loan.
The important documents include an accounts receivable aging report, your client's credit limit request, articles of incorporation, copies of your outstanding invoices with rate confirmation agreements/purchase orders. We provide quick answers and most of the time you can hear from us on the same day.
Still, need to know more about Accounts Receivables? Learn with the Frequently Asked Questions!
The working of accounts receivable factoring is simple. Let’s say you have a startup and initially you want cash flow stability for a smooth running operation. For this you’ll sell your accounts receivables for early payment to an A/R service provider company and in return you pay for a service fee.
Accounts receivable financing allows startups and mid-level businesses to get on-time payments on their outstanding invoices. In accounts receivable financing, the funder pays the invoices for early payment, in exchange for their service fee.
The primary types of receivable financing are;
1. Asset Based lending (ABL)
Asset based lending (ABL) involves the lending of money using the borrower's assets as collateral. This is a common type of lending for those who have cash tied to their assets and if you want ABL to secure then it could easily be secured with Intrepid.
2. Receivables factoring
A business sells its accounts receivable to secure the payment of the invoices but the initial payment is less than the full amount of the pending receivables.