How You Can Use Accounts Receivable Financing as a Safety Net
As a small business owner, you constantly need to be managing your working capital. Running out can spell the end of your business. Luckily, there is a special kind of financing that you can use as a safety net against running out of capital. It is the accounts receivable loan. At Norus Capital, we believe in your small business’ ability to succeed, which is why we offer this and many other kinds of small business loans. Learn more about all our services, including this special kind of small business loan.
How Does Accounts Receivable Financing Work?
When you are approved for financing receivables, you provide us with your unpaid invoices. We immediately provide you with the working capital from these invoices, allowing you to benefit from them without waiting. This creates many benefits:
- Short processing time
- Simple qualifications
- More flexible options
Then, when it is time for your customers to pay their invoices, we collect from them instead. This creates yet another benefit for financing receivables: it is incredibly difficult to accumulate debt. A better way to think of it is that you are simply borrowing from your future capital. This means you do not owe us and in a certain light, it is as if your loan pays itself.