NavyXSeal Federal Bank rprovides invoice financing, allowing businesses to borrow against their accounts receivable and improve cash flow.
Invoice financing, also known as factoring, involves selling unpaid invoices to the bank at a discount in exchange for immediate cash. The bank advances a portion of the invoice amount and collects payment from the customers when the invoices are due.
Purpose: The primary purpose of invoice financing is to help businesses manage cash flow by leveraging outstanding invoices. This type of financing is particularly useful for businesses that experience delays in receiving payments from customers, as it provides immediate access to funds.
Advantages: One of the key advantages of invoice financing is the ability to convert accounts receivable into immediate cash, improving liquidity and enabling businesses to meet their financial obligations. This type of financing does not require additional collateral, as the invoices themselves serve as security. Additionally, businesses can benefit from faster access to funds compared to traditional loans.