Using Accounts Receivable Financing to Pay Off ACH Repayment Cash Advances
Have high-cost, rapid repayment cash advances that are adversely impacting your business? Did the cash advance that seemed like a good idea at the time turn into a nightmare for you company as the constant ACH withdrawals hit your operating account? With an accounts receivable based working capital line of credit from Allied Financial you can pay off your cash advance(s) and have additional working capital available as your company grows. Allied may also be able to provide inventory and/or machinery and equipment financing in conjunction with your A/R based line of credit.
What is Accounts Receivable Financing?
Accounts receivable based financing uses your existing receivables to generate the working capital that your company needs today. As new receivables are generated your company will have the ability to immediately draw down additional funds. As payments are received, your line of credit is paid down and additional loan availability is generated. Unlike cash advances, an accounts receivable based line of credit is revolving in nature and increases as your business grows.
Allied Financial advances up to 85% against your accounts receivable that are under 90 days from the date of invoice. You can take loan advances on an as needed basis. Unlike cash advance companies, a representative from Allied Financial will meet with you at your location to discuss your company’s financing requirements and to structure your loan program. You will have 24/7 access to the status of revolving line of credit and you will have an account officer assigned to your account along with a back-up person so that you will have ongoing support.
How Accounts Receivable Financing is Different than Typical Cash Advances
With typical cash advance companies, your business is offered a cash advance with a very high fee and a rapid repayment where the payments are taken from your operating account via an ACH on a daily or weekly basis. The high fee is immediately added to the amount you received and your payments are then set up to be withdrawn you’re your operating account daily/weekly. If your business should need additional funding chances are your existing cash advance company will not make an addition advance until your payments pay the current balance significantly down forcing you to seek an addition, high rate, rapid repayment cash advance from another cash advance company. As the daily/weekly ACH payments accumulate your business will experience significant financial strain.
With a working capital line of credit based on your accounts receivable, you only open one credit facility that is structured to increase as your business grows.
Talk to Allied Financial of Delaware Valley for Accounts Receivable Financing
If you’re looking to pay off tool your high rate, rapid repayment cash advances, contact Allied Financial of Delaware Valley. We offer fast financing decisions and transparent fees and terms. Instead of taking out another cash advance that can bury your business in fees and high-interest rates, talk to us today at 856-481-4790 and discover how a working capital line of credit can help your business to grow and prosper.