For the business owner whose business sells directly to the consumer, consumer receivable financing provides an innovative and non-traditional means of enhancing the cash flow of the owner's business. Consumer receivable financing involves the business owner selling his/her performing consumer accounts receivables.
The consumer receivables (consumer contracts) are purchased at a discount with a bad debt reserve set aside to offset any possible defaults. The advance which the business owner receives is usually about 70% to 85% of the principal balance on the consumer contract. The terms range from twelve months (sometimes six months or even less) up to five years. Usually the maximum amount of the consumer contract would be about $15,000 (although there are situations where this figure might be increased to as high as $25,000).
If you are a business owner whose industry or business is one which traditional lenders have difficulty understanding and relating to, why not consider the non-traditional benefits which consumer receivable financing has to offer. Traditional lenders like to have something they can repossess in order to get comfortable with the transaction, and so they are not comfortable working with a business owner who works off of unsecured consumer contracts. Likewise many lenders are not comfortable with businesses which have consumer customers with marginal credit.
Access Funding Center, Inc. can work with business owners which many traditional funding sources would not be interested in or able to work with. Interestingly, the reality of the consumer finance industry today is that most companies who do purchase consumer receivables will only purchase "A" credit paper. Many times people who have excellent credit do not even need financing. The people who actually do need help with financing are the "B" and below credit score people. It is the "B" and below credit risk people who Access Funding Center, Inc. can help the business owner with. Why let these people walk away from your counter without the benefit of your product or service, when Access Funding Center, Inc. can help you make them profitable paying customers?
After having provided a financing option for the "B" and below credit risk consumer the business owner has the further opportunity of selling the paper to enhance their cash flow position. There are many benefits to selling one's paper either on a month to month basis or selling a large portfolio which the business owner may have been holding in house.
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