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Benefits of Selective Receivables Financing

May 19, 2022 By Star Funding

When it comes to selective receivables factoring, there are a number of benefits that businesses can enjoy. By taking advantage of this type of financing, companies can improve their cash flow and obtain the financing they need to grow their business.
In this post, we will discuss five benefits of selective receivables finance. Keep reading to learn more!
Selective receivables financing is a type of funding that allows businesses to finance specific invoices as needed.

Benefits of Flexibility With Factoring

There are many benefits that businesses can enjoy with ar factoring. Especially when you aren’t required to factor every invoice.

Improve Cash Flow

One of the benefits of selective receivables finance is that it can help businesses improve their cash flow. Waiting too long for payment from customers can hurt a companies cash flow. Having a selective factoring program can keep a company running smoothly while waiting for customers to pay.

Reduce Bad Debt

Another advantage of selective receivables finance is that it can help businesses reduce bad debt. When businesses are able to finance their receivables, they are more likely to receive payments in a timely manner. A factor can help businesses avoid slow or non-payment, which can add up over time.

Get Funding Quickly

Quick access to funding is another benefit of selective receivables financing. This type of financing can provide businesses with the funds they need in as little as 24 hours, which can be a lifesaver for companies that are in need of quick funding.  Purchase order financing is also easier to set up when factoring is already in place.

Flexible Repayment Terms

Selective receivables financing often offers flexible repayment terms. This type of financing allows businesses to choose how and when they repay their loan, which can give them the flexibility they need to keep their business running smoothly.

Only Specific Collateral Required

Selective receivables financing only requires open and confirmed accounts receivable, but not any other collateral, which is another advantage for businesses. This type of financing can be a great option for businesses that do not have the assets or collateral to secure a traditional loan.
As you can see, there are a number of benefits that businesses can enjoy by taking advantage of selective receivables funding programs. If you are looking for a way to improve your cash flow and get the funding you need to grow your business, this may be the right option for you.
Contact us today to learn more about selective receivables finance and how it can help your business. Start by visiting our application page to GET STARTED.

Filed Under: General Financing News

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