Hey it's Ty Crandall with Credit Suite and in this short video, we are going to decode AR
financing account receivable financing AR factory it goes by many names but the same the concept
is still the same it allows you a way to let your customers pay you on terms while you still get all
the money very quickly let's dive in it's a great tool to be able to help your business grow fast
so you can get AR financing instead of waiting weeks or months to get paid you basically can
let your customers pay you on terms and then get that money advanced to you very very very quickly
now one of the biggest benefits of AR financing is it it often really eases cash flow constraints
so in a lot of cases, you may let your customers pay on terms but that means that they're slow
paying you they're paying over weeks or months and then you're delivering the product and
service having to wait to get paid so obviously as you can imagine that really causes a hardship
in some cases you may wait 90 days or more to get paid so a buddy of mine for example creates the
plastic mugs that they sell at Busch Gardens right so if you go buy that drink for that 10 15 bucks
he makes those but the problem is when he gets an order he has to actually come in he has to be
able to get that order fulfilled and then he has to deliver the order and sometimes wait months to
get paid the problem is he's got payroll committed he's got all these other expenses to produce the
product and then waits months to get paid after that's a huge problem and this is one of the
problems that AR financing is actually designed to fix so if you have clients that are doing this and
paying you over weeks or months then AR financing is a really good way to go because it
allows those clients to pay you on terms over time and then with an AR factor or the lender basically
will give you up to 90% of the money that's owed within 24 hours the next day. So somebody owes
you $100,000 and you usually wait months to get paid on 100 grand with AR financing you can get
90% of that $90,000 advanced the next day to you. Then the other $10,000 is actually paid once the
actual client or the person that owes the money finishes paying the invoice minus whatever that
lender's actual fee is. So it's very similar for example unlike a net 30 term because if you look at
net 30 net 60 terms you're letting customers or companies are letting you pay on terms. Well this is
exactly what you're doing with your customers with AR financing but you're getting the money advanced
right away. So this is very helpful because it even allows you to let your customers pay you on top over
time. If you get 90% of the money advanced to you within 24 hours then it's not a problem to let them
pay you over 2-3 months or even more so it makes it more convenient for your customers to
pay helping you attract more customers and you can still, get up to 90% of the funds advanced
to you within 24 hours, and that's exactly what AR financing does. The nice thing is these AR
factors these lenders they're even the ones that collect on the actual money so not only that benefit
of getting the money advanced right away but you actually can have them collect the funds for you
making it even easier and dedicating less staff to actually be able to run your organization
now factoring rates run anywhere from one and a quarter percent or higher okay you can get ar
financing for as much as 20 million dollars as a matter of fact there's a lot of the biggest
companies out there like Johnson and Johnson this is the main way that they do business is
through AR financing so it's very popular especially with significantly large companies and they also
the other good thing is it's not based on your credit as a matter of fact, they really care about the
credit of the company that owes you money more than actually your own personal credit so your
personal credit doesn't matter your personal cash flow doesn't matter and a lot of cases your time
in business doesn't matter all that matters is that you have customers that are paying you on
terms if you have that there's a good chance you can qualify for AR factoring with rates as low
as one and a quarter percent the lowest factoring rates I've ever seen of any product is with this
one and again cash flow personal credit those kind of things don't even matter to get approved
so if you want to learn more or get approved then give us a ring at 877-600-2487 that's
877-600-2487 or get approved directly online at creditsuite.com/getfunding