Accounts Receivable Financing – Be Inspired

Accounts Receivable Financing – Be Inspired


Benjamin Zander and his wife wrote a e-book entitled: “The Art of Possibility; Transforming Professional and Personal Life”. Their idea is that “you can create a passionate energy permeating The Art of Possibility with a purpose to be a real force on your existence. You could make your personal regulations.” Their e-book is inspirational. You can be inspired in case you purchase and study it. The question is: how does this pertain to money owed receivable financing?

It’s all approximately mindset, enthusiasm and factor of view concerning how to behavior your business. Can you’re making your own rules concerning how banks, business finance agencies and other monetary entities perform? Of path no longer. Can you are making your personal rules concerning the way you utilize the economic recourses which can be available to finance your business? Absolutely!

Here are three examples how to harness the strength of bills receivable sometimes with different styles of financing to grow your B2B commercial enterprise.

Case Study One:

A Solar Energy Company that designed and supervised the set up of renewable energy systems changed into not able to gain bank financing. They had been one of the region’s lowest value companies of sun panels, gadget design and supervision. One in their biggest property changed into State Solar Tax Credits which might be paid to house owners who installation the solar power systems. An responsibility from a State to a consumer isn’t within the definition of an account receivable. In different words, it couldn’t be financed as it was no longer an duty to a commercial enterprise. Using the art of possibility, the owners had been persuaded to assign their solar tax credit to the Solar Energy Company. This transformed a customer receivable right into a industrial debts receivable. Voila! The Solar Energy Company acquired money owed receivable financing it needed to grow.

Case Study Two:

An character purchased an Importing Company that have been financed with a bank’s SBA loan. As collateral for the loan, the bank located a UCC1 filing at the debts receivable and inventory of the enterprise. UCC refers to the Uniform Commercial Code in impact for the duration of the United States of America. In a few respects, it simplifies the procedure of lending, promoting and borrowing nationally. In other ways it’s miles very complicated. A UCC1 filing by way of a financial institution commonly prevents any in addition financing due to the fact there’s no collateral left to be financed. It is similar to a primary loan loan on a residence. If you have a ninety five% loan on your home, no different financing is available on the house due to the fact there is no equity to lend on. Using the artwork of possibility, the Importing Company become a success in convincing the bank to subordinate their UCC1 submitting to any other industrial lender’s UCC1. The Importing Company convinced the financial institution that it might be mutually useful to decrease the bank’s UCC1 lien to a secondary position to permit a commercial finance business enterprise to provide new money owed receivable financing and inventory financing. Voila! The Importing commercial enterprise has a new credit line to be had for growth. It is now extra worthwhile and the financial institution is more likely to be repaid. This is a win-win situation.