Date Added: Jan 2010
When you run a business with credit customers, then you realize that issuing credit invoices and waiting for 30, 60 or 90 days for your payments to arrive can drain you emotionally as well as financially. In such a case you can turn to accounts receivable financing to free your locked money. If cash flow is a problem, then you could turn to banks for a loan. But that would require arranging for collateral. You would only get a fixed amount for a fixed term as a loan and you would still be required to pay interest on that loan.