Accounts Receivable Financing
Trade Risk for Cash
The cash flow of many businesses depends on careful management of accounts receivable, but often it means waiting months before getting paid. This short-term cash flow uncertainty can ruin your current liquidity or upcoming plans for business growth. Even if you do not have access to traditional credit markets, Kirksley can help you get the necessary cash flow via an accounts receivable financing program.
Accounts Receivable Financing Can Be a Solution to Cash Flow Problems
The financing of accounts receivables, otherwise known as factoring, allows you to turn a business risk into a hard asset. Factoring involves the purchase of your receivables by a lender at a certain percent of the value of the accounts purchased (i.e. the advance rate usually between 70-90%). Collection of the amounts due is taken off your hands and eventually you will be paid an additional amount above the advance rate based on the total amount collected minus the factoring fee (1-3%, quite similar to an early pay discount typically offered to customers).
On this program, Kirksley can work with businesses in good health or poor health (bankruptcy/distressed/ unprofitable) and even very new companies with cash flow issues in a variety of industries, as long as the accounts receivables are business-to-business/governmental (i.e. owed by high-quality, credit-worthy commercial customers) generally at invoiced amounts of at least $50K and up to $10M per month.
Is your business in the world of healthcare (medical practice, hospital, rehab center, addiction treatment) and you have accounts receivable due from Medicare, Medicaid, and/or insurance companies? Kirksley can help you with factoring of these medical receivables from as low as $15K in invoices per month.
Skip the Traditional Loan and Choose Factoring
Factoring is a very common and effective financial management technique in the business world and does not reflect negatively on your company at all. When you need to quickly improve cash flow but traditional bank financing is not an option for whatever reason, we can arrange factoring of your accounts receivables with these benefits:
Rapid funding in as little as 1-2 weeks
Good credit or even overall business health is not required (factoring depends almost entirely on the quality of the receivables, in other words are the companies owing money likely to pay their bills and on time?)
Typically no personal guarantee needed
Light application requirements (no company financials, just the detailed A/R information)
Focus on running the business, not collecting accounts due from customers
Use the funds for any business purpose such as to buy inventory or equipment, hire and pay employees, pay debt, grab supplier discounts, or launch marketing campaigns.