by Curt Queyrouze, President
A/R financing helps businesses in a wide range of industries and markets create stronger financial footing. By addressing the difficulties that stem from the delay between selling products or services and receiving payment, companies can develop more stable operations and make decisions focused on the long term.
Through A/R financing, organizations exchange unpaid invoices for a line of credit. This arrangement is flexible, responsive and quickly established, allowing businesses to build on their line of credit simply by passing more unpaid invoices along to their lender.
However, not all A/R financing providers can offer the same level of service, cooperation or attention to their clients. That's why it's so important to know what to look for in a partner before making this major decision.
A strong track record means a lot when it comes to A/R financing. No business wants to partner with a lender or financial institution that can't demonstrate its reliability, nor results with other companies in similar positions. A/R financing requires an ongoing relationship where both sides can interact in a productive way due to the variable, individual nature of the line of credit provided to each business.
When a lender has past expertise in effectively managing A/R financing relationships, it shows they understand the unique format used in this form of lending. That's a vital consideration when you have to choose who to trust to provide a functional, useful line of credit to your business. TAB Bank has 20 years of experience working with businesses to provide lending and financial services, building a resume that displays a clear commitment to positive results.
A/R financing involves a lot of moving parts. The size of the line of credit, the number and value of invoices passed on to the lender, the frequency with which that process takes place and many other factors are all specific to the individual arrangement and can regularly change. A financial institution that doesn't engage with its clients or seem to care about the details of their short- and long-term operations may not provide the best possible level of service.
On the other hand, a lender that stays involved with its clients can offer some significant advantages. With a substantial understanding of how a business functions, a lender can provide meaningful advice that's relevant to the specific situation. They can offer suggestions for actions to take or other financial products to use that fit into an organization's goals and workflows. These benefits supplement the existing lending relationship and create better results for everyone involved. TAB Bank is proud to offer every client a dedicated relationship manager who makes it his or her business to develop knowledge and offer accurate information, targeted insight and useful suggestions.
Maintaining an ongoing awareness of the specifics of a line of credit provided through A/R financing is vital for companies to use this asset to its fullest extent. With all of the secure digital tools currently available to businesses, an online portal is one of the most efficient ways to keep tabs on credit utilization and the many other factors involved in A/R financing. Financial institutions that offer such tools to their clients demonstrate a clear commitment to visibility and make the day-to-day process of managing that line of credit easier.
TAB Bank provides every one of our clients with a suite of streamlined business and online banking tools that allow for 24/7 visibility into an A/R financing line of credit. That's just one of the many advantages our partners enjoy.
A/R financing offers an effective mix of flexibility and quick access to credit while addressing the time-to-payment issues that so many companies face from time to time. To get the most out of your decision to use this especially powerful form of lending, make sure you partner with a financial institution that has your best interests at heart.
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