Accounts Receivable Funding
Imagine handing your franchisees a tool that simultaneously freed up cash and precious time. That’s exactly what AR Funding can do. Franchisees who take advantage of this are able to use capital currently tied up in their invoices and leverage it to expand their business. Imagine a line of credit that grows lock-step with their business expansion. Imagine just not thinking about AR.
What Exactly Is It?
Accounts Receivable funding, or factoring, is a funding vehicle for businesses which have other businesses as clients, and provide their goods or services with terms. These businesses sell the invoices, or receivables, to factoring company, who then collects the funds when due.
Factoring creates the obvious benefit of the franchisee getting paid time of sale or the completion of the work, rather than waiting on the term of the invoice. Additionally, as part of our service, will prepare all the reports relating to their accounts receivable and handle the burden of approving credit and collections with the customers. The Franchisor-Assisted Funding version of factoring has an added benefit; we can collect your royalties for you.
The process is seamless. Your franchisees are able to grow their business unhampered by the lack of capital or the burden of collecting receivables. The end result for your franchisees is that they have more time to concentrate on prospecting, servicing clients, and building their business. The end result for you is franchisees with more capital leading to faster business growth, as well as more royalties and improved validation.
Factoring is a fast, effective way to get cash in their hand today if they are owed money, from credit-worthy customers. In addition to quick, easy access to capital to fund and grow their business, we track and collect on your franchisees’ behalf. More capital, and more successful franchisees’ and more royalties and improved validation.
Not Quite the Right Fit?
If you aren’t certain that this is the right fit for your franchisees, we have other options. Feel free to explore our Working Capital Advance, equipment leasing, or Asset-Based Lending options, or just grab a time on our calendar and let’s discuss.
President Michael Peterson addressing the Franchisor-Assisted Funding Program
Franchisor assisted funding
A new Way to Make Franchisees Successful
As franchisors, franchise consultants, business owners, and finance experts, Franchise Beacon is uniquely situated in the marketplace. We understand the needs of business owners; franchisors and franchisees alike.
We have felt the frustration of seeing a franchisee ready to expand, hindered by the lack of available funding due to their early stage in business. We ourselves have felt the sting of beign unable to make an opportunistic purchase of inventory or assets, because traditional lenders are just so slow.
So what type of programs spring out of this kind of a knowledge base? We encourage you to check out our free e-book, and also consider joining our mailing list to stay up-to-date as we continue to innovate in the industry.