Factoring & Accounts Receivable Financing in Atlanta, GA and Nationwide
Accounts Receivable financing in Atlanta, GA and nationwide is a type of asset financing in which a business’ receivables (money owed from customers or clients) are used as collateral for the loan. Generally, the funds consist of a reduced amount of the receivable assets. The older the age of the receivables, the lower the amount of funding that will be awarded. Accounts receivable funding is also commonly known as “factoring”.
Accounts Receivable
The amount of funding received from an accounts receivable loan is based on the value and age of a business’ receivables. Funding can be used for all daily business operations including employee wages, utility bills, and inventory. With no need for another type of collateral, securing this loan is highly attainable by businesses who have been denied a traditional loan in the past. Once an applicant is approved for a loan, the financing company typically charges a factor fee, which is dependent on how long it takes until the invoice is paid. Factor fees are typically calculated on a weekly basis.
Purchase Orders
For businesses that need cash to fulfill customer orders, we offer purchase order financing. Rather than asking for collateral, the lender evaluates the credit rating of the company’s customers, not the company. When customers have a reliable history of prompt payments, purchase order funding is attainable no matter what the business credit score. Funding is provided to give businesses an opportunity to get back on track, and can typically only be used for the payment of a purchase order. The loan provides funding for up to 95% of the total purchase order.
Limited Recourse Factoring / Non-Recourse Factoring
Limited recourse factoring is secured for only a portion of the amount financed. With full-recourse factoring, the borrower is required to “buy back” accounts receivables which are not repaid by customers. But with limited recourse or non-recourse factoring, the lender undertakes much more risk. If the factored invoices are not paid, then the factoring company will take the loss rather than the borrower. Funding from this type of factoring may be used in all daily business operations including employee wages, construction projects, and purchasing inventory. Limited recourse factoring typically carries lower interest rates than non-recourse factoring.
Contract Financing
Whether a business is monetizing contracts they are currently in negotiations with, or that they have already secured, our contract financing loans provide funding for all daily business operations. Rather than waiting months, or even years, to collect on your contracts, these lending options eliminate waiting for repayment from clients, allowing businesses to start projects faster. Contract financing can also play a critical role in the fulfillment of a contract, by smoothing over cash flow issues. This financing provides companies with the funds needed to deliver on project requirements, fulfilling their contract. Funding is typically 80% of the total contract or more and does not require a credit check, making it an attainable funding option for businesses small and large.
Phone
678-269-4020
info@peachtreecap.com
Address
Marietta, GA 30062