Accounts Receivable Financing May Be The Answer For Your Business

Account-Receivable-Financing

There comes a time in everyone’s career that business isn’t doing as good as they would have hoped. There are ebbs and flows in all ventures, and it’s important to make sure that there is an alternative solution for the bad times. Banks are becoming increasingly picky when it comes to granting a loan application. They are looking for stability, collateral and a rock solid P&L statement. What should the business that has fallen on bad times do when they need money? If the company is not in an active bankruptcy, there’s still hope. Perhaps the answer to get through the tough times is an accounts receivable loan.

The profit and loss statement from Orion Business Capital will show many things. It displays the revenue for the month verses the expenses. It also shows the accounts receivable amount. This is vital to any business because even if there is nothing in the bank. There is always the hope that at any moment someone could walk through the door with a check. It’s important not to let the accounts receivable get too high. What’s also important to monitor is the accounts the go beyond 30 days. Once they become delinquent the chances of collecting that money decrease. Most companies that have low amounts in their accounts receivable account have worked hard to keep it down. It takes diligence to work the accounts and keep the delinquents at bay.

The profit and loss statement from any company will show many things. It displays the revenue for the month verses the expenses. It also shows the accounts receivable amount. This is vital to any business because even if there is nothing in the bank. There is always the hope that at any moment someone could walk through the door with a check. It’s important not to let the accounts receivable get too high. What’s also important to monitor is the accounts the go beyond 30 days. Once they become delinquent the chances of collecting that money decrease. Most companies that have low amounts in their accounts receivable account have worked hard to keep it down. It takes diligence to work the accounts and keep the delinquents at bay.

It’s not as good as getting a conventional loan, as there are many hoops to jump through. These accounts are monitored closely and they don’t have the nice interest rates that a traditional loan does. However, for those who need cash and have little collateral or have fallen on hard times, it may be the only option to get cash in a timely manner.