Accounts Receivable Financing: 7 Benefits For Your Business

In the competitive business world, accounts receivable financing has become very popular with entrepreneurs in the past years. Simply because they no longer have to wait for long pay cycles just to get paid on their invoices! Entrepreneurs are now reaping the benefits including their financial freedom that comes with Receivables Financing.

What Is Accounts Receivable?

When a company considers accounts receivable financing, this means that the entrepreneur is receiving early payment for their outstanding invoices. If your company uses accounts receivable financing, this means that in return for a fee, you are committing some or all of your outstanding invoices to an investor or a ‘funder’ for early repayment.

Top 7 Benefits Of Accounts Receivable Financing

Since receivable financing is now one of the best options to keep the cashflow smoothly in business, many entrepreneurs are considering this financing platform. Here are the top 7 benefits why every SME or e-commerce should also consider receivables financing:

  • Working Capital. This is the major reason why entrepreneurs consider receivables financing for their business. Yes, this is the most obvious, but it also the most attractive aspect of this trade financing platform. Instead of waiting for a long payroll, you can get cash in your hands in less than 24 hours!
  • Free Cash Flow. This option leads to a cleaner balance simply because, with receivables financing, your business will not be adding to your additional liabilities.
  • Credit Score Increase. Aside from debt-free cash flow, other benefits that come with receivables financing is the improvement of your company’s credit score. Since you can stay up-to-date with your fundings, this will also keep you on top of your payables.


  • Easy Process. Trade financing companies nowadays offer easy receivable financing options for their clients. The process is fairly simple as compared to a bank loan. Once you are approved and already set up, the next steps are easy. This uncomplicated option will help grow your company faster.
  • Better Than Bank Loans. Receivables financing is the best option for companies that do not have enough collateral or credit profile to be approved of a loan. There are companies that are also not interested in a monthly loan payment. In this case, receivables financing is the best option.
  • Affordable Fees. One of the best things about receivables financing is its affordable fees. There is no doubt that this option is less expensive compared to the typical merchant cash advance (MCA) or with other types of startup funding that you can think of.
  • Stress-Free Alternative. Any entrepreneur would do everything to ensure that they have the peace of mind that they can pay their bills on time and in full. This takes off the stress that they have on their shoulders. With receivables financing, you can focus more on growing your business that will eventually lead to your company’s success.

If you are given a change of a stress-free and debt-free cash flow without having to worry about monthly payments or hidden charges, then receivables financing is the best option for you. The process is easy and quick. This way, you can make sure that all of your payables are taken cared of. In return, your clients will have more confidence in your credibility. With enough funds, you can deliver efficiently and in a timely manner.