One of the hardest parts about starting a new business is securing the funding. There are many ways to fund your business, including using traditional loans, obtaining lines of credit, or paying out-of-pocket. If all of these options do not work for you, there’s another way you can finance your business. You can utilize accounts receivable financing.
Can you get accounts receivable financing as a Colorado-based business?
Accounts receivable financing is a financial arrangement where a company receives capital relative to a portion of its available accounts receivable. Accounts receivable financing agreements can be utilized in multiple ways with the basis as an asset sale or a loan. Accounts receivable are assets that are equal to the outstanding balances of invoices that have been billed to customers but not yet paid.
Accounts receivable are one of the liquid assets in your business. In fact, it is considered highly liquid. Most companies see Accounts Receivable as a burden because the assets will be paid but require collections and cannot be translated to cash.
If you are interested in accounts receivable financing, Aspen Commercial Lending can help you secure it in the Denver, Colorado area. Some benefits to accounts receivable financing include receiving cash in as little as 24 hours, flexible payments, and recourse-free funding. Accounts receivable financing can also be used for many different things, including payroll, operating costs, inventory, and bulk discounts.
There are many ways to finance a business. You can look into traditional financing, fund it out-of-pocket, or invest in a line of credit to cover your expenses. Another viable option for financing a business is through accounts receivable financing. Accounts receivable financing finances money against accounts with outstanding balances that haven’t been paid. Accounts receivable financing is a great method to fund a business, and if you are in the Denver, Colorado area, Aspen Commercial Lending can help you with the process.