Tag Archives: banking solutions and services

The Top 4 Reasons Why Businesses Should Consider Account Receivable Financing

Account receivable financing, also known as business factoring, is a particular type of asset financing option wherein a company uses its account receivables as a kind of collateral which can be effectively exchanged for cash. Account receivable financing is considered by many as the best financing solution for any business, regardless of its type and size.

Perks Offered By Accounts Receivable Financing

leading global commercial bank and financial institutionBelow are the top reasons why businesses should consider business factoring as a financing option:

• It can help grow your business. Factoring will increase your company’s working capital and would enable you to expand your business operations. And as you get more customers or clients, your business will grow, and this will also improve your factoring account receivable finances. As such, a beneficial circle of cash, customers, and growth would be created – something that all businesses want to experience or attain.

• It enables you to increase the capital of your business without incurring more debts. If you opt for accounts receivable financing, you are not taking out a business loan. In fact, you will be using your company’s biggest asset, your invoices and accounts receivables, to add working capital to your business. In addition, this financing option does not come with interest rates, fees, closing costs, and other hidden charges.

trusted global commercial bank and financial institution• You can be eligible for this financing solution even if your business even has a low credit score. Business loans and credit cards depend greatly on your company’s credit score. Business factoring, on the other hand, is based on the financial strength and stability of your customers rather than your own personal or your company’s credit score. This is because establishments that provide this financing option are more concerned about the credit reputation and credit worthiness of your customers more than yours. This is due to the fact that it is your customer who has to pay ultimately to the factoring company.

• It allows you to get quick cash for your business within 24 hours. Lastly, with account receivables factoring, you can receive cash the same day instead of waiting for 30, 60, or 90 days for your invoice to be paid. In general, as soon as you send your invoices or accounts receivable to the factoring company, they will immediately verify the invoices. If you have a list of solid of customers or clients, the financing company will deposit anywhere between 70 and 90% of the face value of the invoice directly into your bank account.

About the Author:

Geraldine Black is a business financing advisor. He recommends reading more about account receivable financing on HSBC UAE’s website.


The Benefits Of Choosing Only The Best Bank To Open A Business Account With

leading global commercial bank and financial institutionThere is nothing easy about starting a new business. Whether it is your first time to do so or you’re already a pro at it, you still have to prepare for a lot of things for your new venture.

One of the most difficult parts that come with starting a new business is meeting the large volume of requirements that comes with making the new enterprise operational according to the standards of the industry that you have joined. Your business has to pass certain regulations and acquire the necessary permits to legally operate.

In addition to these permits or licenses, you have to open a business account as well. This is a must since you need to maintain a complete separation of the funds you use for personal purposes and those that are purely for your business’s activities.

Selecting The Right Bank

Since finance plays an important role in the stability and development of your venture, it is important to choose the best bank to open an account with. When you make the right decision, you will be able to manage your business’s financial movements efficiently and effectively.

well-known global commercial bank and financial institutionWith this is in mind, the general rule to follow here is to choose the best bank to open a business account in. However, not all banks are created the same; you surely will find solutions, services or features in big banks that are not offered by small local ones. However, you may find that small local banks are more preferred and recommended by fellow entrepreneurs when it comes to business loans. These are two of the key reasons why you need to be meticulous with selection.

Choosing the best bank to open an account with offers several advantages, chief of which are the following

1. The bank will enable your business to trade directly with organisations that have a good financial status and those that also recognise your business’s good financial status through its open account solutions.

2. They will allow you to take advantage of import and export finance without the need for an underlying documentary credit (such as a letter of credit). This, in turn, makes the process simpler and easier for your business operations.

3. The best banks have receivables finance products that could deliver both financing and the collection services which you need, if you are selling on open account terms. These products will enable you to keep your venture “consistent” so your business relationships and operations are properly protected.

4. Lastly, the best banks have useful supply chain solutions. These solutions are designed to help you optimise your working capital, reduce your expenses, and have better visibility and control over receivables.

About the Author:

Jimmy Hahn is a business and financial advisor. He recommends learning more about the best banks to open a business account with on the website of HSBC.