7 Things Everyone Should Know About Accounts Receivable Financing

There cannot be anything worse for a company than its customer continually paying late. Sound familiar? Are you struggling with payments to your suppliers, or even worse, your employees? Is there a solution? Yes, there is, it’s called Accounts Receivable Financing, also known as Invoice factoring or invoice forfaiting. 


Don’t panic; there is a solution.

What is Accounts Receivable Financing?

Accounts receivable financing allows companies access to additional funding by selling their accounts receivable or purchase orders, allowing them to continue operating unencumbered with the lack of cash from slow or late-paying customers.

Halliday Growth is committed to supporting the UAE business community and can help you navigate your way to profitable growth without the issue of cash shortages. Below we have listed.

1. No time to waste

The clear advantage to accounts receivable financing is that the funding is immediate, following the usual due diligence if you are a new customer. There is no need to wait for the 30, 60, or 90-days for payment; you can have the cash right now! You can service your business’s cash needs, which may allow you to regain creditworthiness with suppliers respectfully.

2. Readily available capital

As your company grows, you will access cash flow that keeps pace with your growth rate. The more invoices you have, the greater the availability to factor or forfait more.

3. Fast and easy

Once the onboarding process has taken place, you are ready to draw down the funds, and typically the funds can be deposited within your bank account within 24 hours. Compare our speed with a bank loan if you can secure one quickly in the UAE!

4. A credit enabler

When you have sufficient cash flow, you will pay your creditors on time. Your firm will be considered stable and predictable, improving your creditworthiness allowing for negotiations on better payment terms.

5. Comprehensive statements

You will receive detailed reports on the status of your receivables, whether they have been paid or not, or even past due. This saves management time for you now there is no need to prepare detailed reports; you can concentrate on what you do best, growing the business.

6. It’s all about equity

An alternative to accounts receivable funding is equity funding. This means selling some of your company in return for operating cash. This is an expensive way of funding and introduces new shareholders with interests that may not be aligned with yours. Forfaiting and factoring allow the business owner to retain 100% of the business and complete operations control.

7. There is no debt to repay

Factoring and forfaiting are not considered loans; there is, therefore, no debt to repay. In other words, your balance sheet will not attract liability as with other loans available to the business community.

As a working capital solution account, receivable financing will allow you to concentrate on the growth of your business, leaving you with the peace of mind and the stress-free focus you need on the ongoing productivity and marketing of your company.

If you or some company you know are burdened with regular late payments from customers and ready to turn those receivables into cash, please get in touch with our team; they will be able to answer any questions you may have and walk you through the simple process we have developed.

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