X

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.

View this article on one page

Poll

Have truck sales the first 3 months of 2014 changed your expectations for year-end sales?

Latest

Truck sales expected to grow this year

Used truck market normalizing

Inland Kenworth moves to larger facility

Popular

Guidance for dealing with a termination

Decisiv, Ryder create maintenance partnership

Freightliner of St. Cloud CFO inducted into DTNA CIC Summit Club