Accounts Receivable Financing: Unlock Working Capital
At Celtic Capital, we specialize in providing asset-based lending solutions, including accounts receivable financing, to help small and mid-sized businesses unlock the cash they need to grow and thrive. If your business is struggling with cash flow, our accounts receivable financing offers an efficient way to convert your outstanding invoices into immediate working capital.
Why Choose Accounts Receivable Financing with Celtic Capital?
- Retain Business Ownership: Unlike equity financing, accounts receivable financing allows you to raise capital without giving up control of your company.
- Quick Access to Cash: Don’t let slow-paying invoices hinder your business. With our accounts receivable financing, you can access working capital quickly, helping you meet operational expenses, pay vendors, or seize new growth opportunities.
- Flexible and Scalable Financing: Your available credit is tied directly to the value of your accounts receivable. As your business grows and your sales increase, your available financing grows with it. It’s a flexible solution that adapts to your changing business needs.
$5,000,000
IT Service Provider
$1,000,000
Commercial Electrical and Lighting Maintenance
$2,000,000
Supplier of Office Supplies, Furniture and Commercial Printing
$3,250,000
Supplier of Advanced Structural Composite Assemblies
$4,418,710
Manufacturer of Components for Electronics and Communications Industries
$4,897,600
Manufacturer of Steel Hex Keys
$1,000,000
Manufacturer of Lighting Fixtures
$5,030,000
Oil & Gas Extraction Services
$4,400,000
Manufacturer of Large, High-Quality Metal Gears
$4,000,000
Manufacturer of Precision Components and Assemblies
$1,250,000
Manufacturer of Prefinished Doors and Trim
$3,114,000
Fabrication of Metal Parts for the Automotive Industry
$1,700,000
Commercial Bakery
$2,500,000
Cloud-Based Managed Services
$3,610,960
Printer for the Newspaper Advertising Industry
$1,000,000
Importer of Premium Natural Sea Salt
$2,738,000
Manufacturer of Tortillas, Wraps, and Flat Bread
$740,000
Tank Truck Hauling
$2,000,000
Manufacturer of Dry Blended Food Products
$900,000
Manufacturer of Specialty Chemicals
$2,940,000
Manufacturer of Precision Machine Products
$1,652,000
Manufacturer of Electrical and Mechatronic Automotive Parts
$3,476,000
Concrete Polishing and Restoration Service Provider
$1,000,000
Distributor of Furniture and Fixtures for Commercial Buildings
$2,626,500
Manufacturer of Superfood Products
$1,000,000
Environmental and Industrial Hygiene Consulting
$1,500,000
Powder Coating Job Shop
$6,835,000
Commercial Printer
$1,130,000
Precision CNC Machine Shop
Frequently Asked Questions
What’s the Difference Between Accounts Receivable Financing and Factoring?
Many people confuse accounts receivable financing with factoring, but there are key differences. Factoring involves selling your accounts receivable to a lender at a discounted price. In contrast, accounts receivable financing through asset-based lending allows you to borrow money based on the value of your receivables while retaining ownership and control over them. This means you maintain control of your customer relationships and don’t need to sell off your invoices to access cash.
Is Accounts Receivable Financing Right for My Business?
If your business struggles with cash flow gaps due to long payment cycles, accounts receivable financing could be a great option. It’s ideal for businesses that need quick access to funds but don’t want to give up ownership, need funds a bank won’t provide, or are looking to grow.
What Types of Businesses Benefit Most from Accounts Receivable Financing?
Businesses that have slow-paying customers or need quick access to cash to cover operating expenses can benefit the most from accounts receivable financing. Industries such as manufacturing, wholesale distribution, staffing agencies, and service providers often rely on accounts receivable financing to smooth out cash flow gaps caused by extended payment terms.
How Does Accounts Receivable Financing Differ from Factoring?
While both accounts receivable financing and factoring involve using invoices as collateral, the main difference lies in the structure of the arrangement. In factoring, the lender (factor) purchases your receivables outright and takes over collections. In accounts receivable financing, you retain control over your customer relationships and collections, and the lender simply provides a loan based on the value of your receivables.
Are There Any Fees Associated with Accounts Receivable Financing?
Yes, there are fees associated with accounts receivable financing through an asset-based lender, but they are generally structured as interest rates or financing fees. Instead of the factoring fees seen in invoice factoring, asset-based lenders typically charge:
- Interest on the loan: This is usually calculated based on the amount of capital you’ve borrowed and the time you hold the advance.
- Origination fees: Some lenders may charge a one-time fee for setting up the financing arrangement.
- Maintenance or service fees: These fees may cover the costs associated with managing the loan, including monitoring your receivables.
The total cost can vary based on things like the size of the loan, the length of the financing agreement, and the risk associated with your business. These fees are typically lower than the fees charged in factoring, and they offer more flexibility in terms of repayment.