What Is Accounts Receivable Financing and Why Is It Great for Startups?

Financing receivables involves using unpaid invoices and turning them into cash advances. Instead of waiting several months for your clients to pay you, you can get capital right away. This helps in many ways:

  • Taking advantage of product deals to buy equipment
  • Ordering a large amount of inventory for a bigger discount
  • Hiring additional employees for better customer service
  • Buying the best computer equipment possible for your business
  • Adapting to unexpected cash flow problems

This isn’t a loan, so it doesn’t give you any debt. You don’t have to worry about collateral or monthly payments. Accounts receivable financing simply gives you the money you need faster than you would normally get paid.