Accounts Receivable Financing
Accounts Receivable Financing, also commonly referred to as factoring, is a useful and often critical tool for small and medium sized businesses in need of cash. Whether you’re growing quickly, battling seasonality, or dealing with longer payment from customers, Accounts Receivable Financing can inject cash into your business quickly and efficiently.
Accounts Receivable Financing works as follows:
- You ship or provide your product or service to your customer and invoice them as you would normally.
- You then sell that invoice to the The Southern Bank and receive cash today for that sale.
- The Southern Bank then collects payment for that invoice on the date that payment is due.
Don’t let seasonality, long payment cycles, or cash crunches put you out of business.
Often used in place of a traditional line of credit, The Southern Bank’s Accounts Receivable Financing program provides clients smoother cash flow cycles and peace of mind regarding when they’ll be paid.