Using A/R Financing in Textiles and Apparel
Whether you’re a distributor, manufacturer or importer, the textile industry requires an extensive amount of working capital for companies to be successful. Working with bulk orders and international corporations require consistent cash flow. Find out how you can buy and sell textiles easily with accounts receivable financing.
When you choose accounts receivable financing or A/R financing, you’ll enjoy flexible capital to take advantage of any sudden deals or investments. Unlike a traditional loan, A/R financing gives you the freedom to receive your income quickly and spend it however you wish. Don’t wait for drawn-out approval times or other restrictions on your spending.
When you finance your accounts receivable, you can expect to receive a large portion of the invoice in just a few days. While you won’t receive the entire amount, you also won’t have to wait for 30 or more days for your invoice to be paid. This alleviates some cash flow issues and gives you the financing you need to purchase inventory or raw materials to produce textiles.
Bank loans require monthly payments, high credit scores, and other restrictions. Instead, A/R financing relies on the credit score of your customer. This means that even small businesses in the textile and apparel industry can use this financial tool to stay on top of current orders and grow their business.
Take advantage of the flexibility of A/R financing to grow your clientele. If you need additional funding to take on a major client, simply advance some of your accounts receivable to receive the cash you need. Don’t go into more debt as you grow your business, but use your existing income streams and simply receive your money earlier than expected.
Depending on your contract, some A/R financing allows you to pass on the responsibility of collecting your invoice. This means that, in the event of late payment, your lender will deal with the stress of collection. A/R financing allows you to not only improve the flexibility of your cash flow, but you can also avoid time-consuming and stressful issues with payment.
Take charge of your textile financing today with the best terms on this financial tool. Discover how you can buy and sell textiles easily with A/R financing for your textile and apparel business. Whether you’re investing in raw materials or improving your distribution model, it’s an excellent way to accelerate your business growth.