Do Your Homework and Reap the Benefits
The execution of business to business (B2B) customer open accounts receivable (AR) financing can be a minefield, so it is vital to prepare adequately for such a facility from all angles. Below is an outline of general steps recommended for a successful initiative – including the critical questions to ask both internal teams and external partners.
In light of the current challenging macroeconomic environment, AR finance solutions can be a great way to gain gain access to cheaper cost of funding, non-recourse and or off-balance sheet treatment, diversification of funding, access to a different liquidity source, and an improvement in working capital metrics.
Common receivables finance products include: