5 Businesses That Use Accounts Receivable Financing

June 23, 2016

Financing With Accounts Receivable Financing

In order to maintain daily operational costs, businesses need to secure a steady stream of cash. Businesses in a variety of stages turn to accounts receivable financing to achieve this. Here are a few examples of how our customers utilized it to fund their companies.

1. Start-Up Company Uses Accounts Receivable Financing

A start-up trucking company located in Kentucky needed financing in order to pay its drivers and fuel up its trucks. Having little credit history, the trucking company was unable to obtain substantial financing through a bank. Scale Funding provided them with a $150,000 accounts receivable line, giving them the ability to accept new contracts, pay their drivers and keep their rigs rolling.

2. Company with Maxed-Out Line of Credit Uses Accounts Receivable Financing

A Minnesota cell tower maintenance company needed more capital to keep up with the growing demands of the telecom industry. They were unable to obtain more capital through a business line of credit as theirs was maxed. Scale Funding helped this cell tower maintenance company by providing them with a $300,000 accounts receivable line so they could take on more contracts and be a part of the growing telecom industry.

3. Growing Company Uses Accounts Receivable Financing

A trucking company in Illinois wanted to accept some bigger contracts to grow their company. However, they needed the cash to buy more trucks and hire more drivers. Because of a $500,000 accounts receivable financing line provided by Scale Funding, the trucking company was able to grow. Currently the Illinois trucking company continues to accept more contracts. Their accounts receivable financing line is growing with them.

4. Company That Was Turned Down by a Bank Uses Accounts Receivable Financing

A Texas water-hauling company working in the oilfield was turned down by the bank due to the risks and less-than-perfect credit. The company needed cash to maintain operating costs, but was unable to get funding from their bank. Scale Funding financed them with a $75,000 accounts receivable line. This provided the water hauling company with sufficient funding to maintain their operations while keeping a positive relationship with their bank.

5. Company with Slow-Paying Customers Uses Accounts Receivable Financing

A California-based technology company worked with some well-known companies. They had several lucrative contracts. Due to slow payments from customers, keeping up with operating expenses became a daunting challenge. Their typical invoice was paid in about 65 days. Even though the technology company was waiting for payment, they still had to keep up with daily operating expenses, monthly rent, bi-weekly payroll and numerous other expenses. Scale Funding provided them with a $1.3 million accounts receivable financing line so that they were able to continue their operations and grow with new and bigger contracts.

Could Your Company Benefit from Accounts Receivable Financing?

Whether your company is a start-up, well-established or poised for growth, accounts receivable financing is a reliable stream of cash for your business. Companies with good credit, no credit or less-than-perfect credit use financing with Scale Funding to continue operations and work toward business growth.

If you’re in need of a steady cash flow, contact a financial representative at Scale Funding today. (800) 707-4845.