How does accounts receivable funding work?
Simply put, accounts receivable funding is the purchase of accounts receivable from a business at a discount. It is designed for businesses that need money immediately, and can’t afford to wait 30, 60, or 90 days for a customer to pay. In most cases, either the business owner can’t meet his cash demand (because, for example, his customers are slow to pay or income is low due to a seasonal slowdown), or his business is growing so rapidly that its cash flow can’t keep up with its growth.
