Accounts Receivable Loans

Accounts receivable are created by a business when it sells merchandise or performs services and extends open account terms to its customers.  In trade sales transactions, a receivable usually arises when title to the merchandise passes from seller to the buyer.  In sales of services, a receivable usually arises when the buyer deems performance by the seller is satisfactory.  In either case, a receivable arises when, under terms of sale, the account debtor’s obligation to pay becomes unconditional.  A loan against accounts receivables is a quick way to obtain working capital.

The delay between performance of a service or delivery of a product and the payment for these services and products can be significantly longer than is financially comfortable for small business owners. Materials must be purchased for manufacturing purposes, employees must be paid for their work and utilities and maintenance must be performed for small business facilities. These expenses are ongoing and must be met in order to continue regular company operations on a normal basis. In some cases, the delay may prove financially challenging and may necessitate short-term changes in the way the company does business. In order to avoid these cash flow problems and to manage operations more efficiently and effectively, small business owners can arrange for accounts receivable loans to bridge the gap between delivery of services and products and payment. These short-term arrangements can provide much needed cash on hand for a variety of required payments and business opportunities.

CNF Exchange specializes in connecting small business owners with lenders interested in offering loans for accounts receivable. These lenders typically offer short-term accounts receivable loans for amounts due from client companies in good standing. By locating the right lending for accounts receivable arrangements, small business owners can manage cash flow concerns much more effectively and quickly. This can provide the necessary funding for continued operations and to take advantage of special opportunities when they arise. CNF Exchange can help small businesses find lenders willing to make accounts receivable loans even in challenging economic conditions and can even provide assistance throughout the loan application process to give small businesses the edge in today's competitive marketplace.