Receivable Financing: Turning Your Customers' Debts into Cash
Receivable financing is a financial arrangement that allows businesses to convert their outstanding customer invoices into cash upfront.
This can be a valuable tool for improving cash flow, accelerating growth, and managing working capital.
How Receivable Financing Works
The process of receivable financing typically involves the following steps:
Invoice Submission:
You submit your customer invoices
Advance Payment:
Advance you a percentage of the invoice amount, usually between 40% and 60%.
Invoice Collection:
Bankroll Financial Services Limited will then collect the full amount of the invoice from your customer.
Repayment:
Once the invoice is collected, Bankroll Financial Services Limited will deduct their fees and any remaining balance will be returned to you.
Types of Receivable Financing with Bankroll Financial Services Limited
There are two main types of receivable financing offered by Bankroll Financial Services Limited:
Factoring:
In factoring, Bankroll Financial Services Limited purchases your invoices at a discount and assumes the responsibility for collecting the payments.
Invoice Discounting:
In invoice discounting, you retain ownership of your invoices but use them as collateral to secure a loan from Bankroll Financial Services Limited.
Benefits of Receivable Financing
Improved Cash Flow
Receivable financing can provide a significant boost to your cash flow by converting outstanding invoices into cash upfront. *
Accelerated Growth:
With improved cash flow, you can invest in growth initiatives, expand your operations, and seize new opportunities.
Reduced Risk:
By transferring the risk of non-payment, you can reduce your exposure to bad debts.
Working Capital Management:
Receivable financing can help you manage your working capital more effectively by providing a reliable source of funding.
Factors to Consider When Choosing Receivable Financing
Fees and Charges:
Compare the fees and charges associated to find the most cost-effective option.
Advance Rates:
The percentage of the invoice amount that you will receive upfront will vary depending on Bankroll Financial Services Limited and your creditworthiness.
Terms and Conditions:
Carefully review the terms and conditions of any receivable financing agreement with Bankroll Financial Services Limited to understand your rights and obligations.
If you're looking to improve your cash flow and accelerate your business growth, receivable financing with Bankroll Financial Services Limited can be a valuable tool.