4 Advantages of Accounts Receivable Financing for Small Businesses

When small businesses are strapped for cash, many business owners think first of their bank. They assume that the process is to walk into the bank, fill out some paperwork, answer a few questions, and sign on the line. Unfortunately, it’s rarely that easy.

For young businesses, or ones that don’t “look good on paper,” it’s extremely difficult to get traditional bank loans. By some estimates, banks turn down up to 80 percent of small business loan applications. If you fall into any of these categories, you may be denied a loan:

You need less than $250,000
Your credit score is below 640
Your business is less than two years old
Your business recently posted losses

Even if you manage to get past these hurdles, getting a traditional bank loan is often difficult because of today’s strenuous banking regulations. Additionally, a downturn in the number of community banks, which typically approve three times the number of small business loans as compared to larger banks, has also reduced the available capital to small business owners. It’s easy to understand the frustration felt by entrepreneurs seeking capital.

Don’t Despair, You Have Alternatives

Accounts receivable loans are an excellent alternative financing option for B2B or B2G small businesses on the rise. If you’re growing and find that you have more accounts receivable invoices than cash flow, Allied Financial Corp can help – even if the bank has turned you down.

Here are some of the benefits of financing with Allied Financial Corp.

Fast Access to Capital

Unexpected expenses can set your business back suddenly. Accounts receivable financing eases the financial stress by letting you convert your A/R invoices to cash. You get the funds you need in days instead of weeks or months which is typical of banks.

The process is easy, and decisions are fast. You can begin online.

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Small Business Friendly

At Allied Financial, we know small businesses. We take the time to get to know you and to understand your business. We have years of experience in structuring lines of credit for small and medium sized business owners. We work closely with our clients to build a financial foundation strong enough to help borrowers grow their business and to get through challenging periods.

Retain Control of Your Business

You are not selling your invoices—like you might with other alternative financing—but borrowing against them, so there is no interference with your customer relationship.

Less Stress

A reliable partner and fast, simple access to working capital means more peace of mind for you. Less stress over funding means you can focus more on the important things like selling, marketing, and growing your business. Less stress means better business.