Every business will experience times when you need to access credit to support or meet payroll, invest in inventory, or to pay day-to-day operating expenses. As a small-to-medium size business owner you know that it can be hard to get the working capital needed, when you need it. But you have another option to the traditional business loan or line of credit—Accounts Receivable Financing.

Accounts Receivable (A/R) loans are increasingly popular because you get fast cash, free up working capital,  and you retain ownership of your business.

What’s Required for A/R Financing

Even if you’ve been turned down for traditional bank loans, you may qualify for an Allied Financial accounts receivable loan. Here is what’s required

You are a Business-to-Business Company. If you sell goods or services to other companies and offer payment terms, you may qualify

You have Capable Management. Any financing, even Accounts Receivable loans, can only do so much to ensure the success of a company. We need to see that your business is well structured and feel confident that your management can execute your business strategy.

You have a Good Product or Service. To be successful, every business must have a good product, idea, or service; especially, if your business is poised to do well in the current industry.

You have Accounts Receivable Invoices. Because we lend against business-to-business receivables, you must have executed at least some invoices for your borrowing base.

You have a good reputation in the Industry. Trustworthiness is important in any financial arrangement. Having an outstanding reputation in your field helps us to make the right decisions for you.

Consider Your Present and Future Goals

While immediate needs can feel pressing, don’t just think of what you need today. Understanding where you plan to be tomorrow helps us structure a financing plan to meet both your short-term and long-term goals. Be prepared to tell us what you need today and where you plan to be tomorrow.

Gather Your Documents

Be prepared, especially if your financing requires a quick turnaround time.  Gather the following documents and have them ready at the time of the initial consultation. This will help us make a rapid decision and get your funds to you sooner.

You’ll need:

  • Both a Current and Year-end financial statement, along with a Personal financial statement.
  • Current accounts-receivable and accounts-payable aging reports
  • Two or three samples of invoices

Download a Personal Financial Statement Here

Call Allied Financial Corporation

If you meet the requirements for accounts receivable financing and you’re ready to take the first step, or if you simply want more information about A/R loans, contact us today.