The most important and common services that are offered by accounts receivable company is, cash is offered in return for sale of account receivables
Sometimes, accounts receivable management concept is also mistaken by people as loan, rather as financing. Remember, account receivables management is not a loan; rather it is referred to as factoring company that purchases invoices from business owners.
The invoices will then be sent by you to your customers, but the payments will be mailed to the factoring company.
On hiring receivables management agency, they assess your client's credit status and history in order to determine which client will be a safe risk to proceed with or assume.
This method of credit checking is another type of service offered by accounts receivable agencies. Such services can benefit business owners by highlighting which client is potential to cause loss.
After the company purchases the rights to the invoices generated, business owners can receive a large amount of invoices in cash, which may be even up to 80% of the total invoice amount.
Once the clients paid full invoice amount, then business owners will get the rest of the amount of the invoices, however, with a small percentage paid to the agency, accounts receivables towards the services they have done for you.
In these aspects, approaching accounts receivable management agency will be an effective and safe way to inject cash quickly without any risk into your business.
There is in fact no collateral is needed other than receivables. Any business owners can gain from such services, which obviously improves the performance of the business and takes it to the next level of growth and prosperity.