Factoring and Inventory Financing, an Alternative for Commercial Businesses
Commercial businesses are the hub of economic activities. Every sector of the economy benefits from retail and wholesale businesses such as food and beverage, motor vehicles and automotive fuels, health and personal care products, furniture and home furnishings, electronics, household supplies, sporting and leisure goods.
The commercial business sector is very competitive with many companies strategizing on growth and how to gain market share in order to become more profitable. The crux of most commercial companies’ decision making process is how to access funds for financing major projects and inventory purchases.
Demand for retail goods such as household products, food and beverage, sporting goods, amongst others, continue to rise causing a spike in purchase orders for commercial businesses. A major issue arises when cash is not available to settle vendor payments or make additional purchases. This funding issue can be resolved if commercial businesses pursue financing through alternative means like factoring and inventory financing.
The nature of most commercial businesses demands high levels of inventory; this current asset can be leveraged upon to draw cash from financing companies. For wholesale businesses that carry a lot of accounts receivable balances due to the large scale of credit sales, an alternative option for financing can be explored through factoring and accounts receivable financing.
Now more than ever, is the time to consider alternative sources of financing to take advantage of increased market demand. Traditional banks are unable to meet the funding needs of commercial businesses but operations must continue as usual; vendors need to be paid, inventory has to be purchased and products/services need to be sold.
How can factoring, accounts receivable financing and inventory financing help commercial businesses?
Factoring : If your commercial business has invoices that have not yet been paid, you can sell those invoices for a fee to a factoring company like Accord Financial. Accord, a long-lasting member of the International Factoring Association, gives you cash in advance of up to 90% of your invoice balance while also utilizing their experienced team to carry out effective accounts receivable management.
Accord uses high-end software to help you manage customer invoices and make the collection process more productive, while assisting your business to structure customized financing solutions. We can also utilize your eligible accounts receivable assets to structure asset-based lending financing. In that case, as opposed to factoring, you are not selling your invoices to the lender. The lender will lend against your receivables.
Inventory financing: Wholesale and retail businesses operate on substantial levels of inventory. Instead of tying up cash in inventory, your business can access alternative financing by using your eligible inventory as a collateral for funding.
Accord Financial makes the inventory financing process seamless, partnering with your business to make the best out of every situation. Your commercial business would benefit from the retail inventory financing solution to help finance increased operations and growth.
Explore various asset-based lending facilities and lines of credit with the Accord team to finance your commercial business. With over 40 years of partnering with businesses to succeed, let Accord support your wholesale business with adequate wholesale financing.