Financing Your Expansion

Lucas Deal January 24, 2013

Leveraging accounts allows a company to sells its receivables as a way to quickly provide cash when trying expand or grow, says Leif Founds, vice president at Corporate Billing, LLC.

“We’re able to help [businesses] free up capital that is tied up in their receivables to re-invest into their business any way they see fit,” he says. “If a guy has a $1,000,000 on the books in receivables, we can take those accounts and provide him a cash value in return.”

Founds and Kenepp say leveraging account rates are flexible and vary depending on the size and scope of a transaction, and there are no personal guarantees.

“The lower the transaction; the lower the rate,” Founds says.

Once a deal is approved, cash loans can be provided in one business day.

While leveraging accounts does not require long-term contracts, there are some parameters when finalizing receivables transfers. Kenepp says businesses are obligated to repurchase invoices of non-paying customers when working with The Receivable Exchange, and Founds says his customers must undergo a 90-day trial before his company officially shoulders the financial burden of outstanding accounts.

Kenepp says a business can sell as many receivables as it sees fit. Founds says his company has purchased receivables ranging from several thousand dollars to several millions.

“We have never had a client come back and say this isn’t working,” says Founds.

So that’s another option; and when you are trying to expand it is best to look into every financing option possible. After all, you can’t expand without financial backing.

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