Empower Your Business with Accounts Receivable Factoring from Bridgeport Capital
In the realm of business finance, managing cash flow effectively is paramount to success. Yet, many businesses face challenges in maintaining adequate cash flow due to delayed payments from customers. This is where accounts receivable factoring from Bridgeport Capital can make all the difference.
What is Accounts Receivable Factoring?
Accounts receivable factoring, also known as invoice factoring, is a financial transaction where a business sells its outstanding invoices to a third-party financial institution (the factor) at a discount. In exchange, the business receives immediate cash, allowing it to access the funds tied up in accounts receivable without waiting for customers to pay.
How Does it Work?
The process of accounts receivable factoring is simple and straightforward:
- Submit Invoices: The business submits its unpaid invoices to Bridgeport Capital for evaluation.
- Approval and Advance: Upon approval, Bridgeport Capital advances a percentage of the invoice value to the business, typically ranging from 70% to 90%.
- Collections: Bridgeport Capital assumes responsibility for collecting payment from the business’s customers. This includes sending payment reminders, following up on overdue invoices, and managing the entire accounts receivable process.
- Final Payment: Once the customer pays the invoice in full, Bridgeport Capital deducts its fees and remits the remaining balance to the business.
Benefits of Accounts Receivable Factoring
Accounts receivable factoring offers numerous benefits for businesses, including:
- Improved Cash Flow: Factoring provides immediate cash, allowing businesses to meet their financial obligations, pay suppliers, and invest in growth initiatives without waiting for customer payments.
- Outsourced Collections: Factoring relieves businesses of the burden of managing collections, freeing up time and resources to focus on core activities.
- Flexible Financing: Factoring is a flexible financing solution that grows with the business. As sales increase, so does the availability of funds through factoring.
- Enhanced Credit Management: Factors often provide credit assessment services, helping businesses mitigate the risk of bad debt and improve their credit management practices.
Why Choose Bridgeport Capital?
At Bridgeport Capital, we understand the unique challenges businesses face in managing cash flow and working capital. Our accounts receivable factoring solutions are tailored to meet the specific needs and goals of each client, providing flexible financing options and personalized service to help businesses thrive.
If you’re looking to unlock the cash tied up in your accounts receivable and take control of your cash flow, contact Bridgeport Capital today. Let us be your trusted partner in financial success.
