Newer businesses in particular have outstanding purchase orders. This is not necessarily from clients paying late. It can also be from offering generous payment terms. Extra time to pay means clients will take advantage of the extra time you’re giving them.
Account receivable financing is extremely easy to qualify for. You will not need financials or good credit to get approval. To qualify for AR financing your business must be open for at least 12 months. The lender will review your existing receivables or purchase orders.
Does your business contain the name of its industry? That can be problematic if you’re in what is considered to be a risky industry. Risk is usually defined as a higher chance of injury on the job and/or businesses which perform more cash transactions than most other companies. To become more fundable, don’t add the name of a risky industry to your business name. Deciding on your business name can take less than a day.