How Do You Do Receivable Financing – Loan Against Receivables

Logistic companies, construction industries, production firms, and other MSMEs are the backbone of the economy and global trade. The lack of access to capital affects their growth and revenue. They need capital to fulfill their daily business needs, but with many banks maintaining a tight hold on their cash assets, industries are finding it difficult to get the required funds.

Especially MSMEs are struggling a lot to secure funds from banks for everyday expenses. Here are some other the challenges faced by enterprises for financing from banks:

       Lengthy receivable cycles

       Limited distributor network coverage

       Lengthy paperwork and waiting period due to limited digital intervention

       Limited access to funding through bank-led channel finance programs

       Minimal distributor engagement

In this case, Red Fort Capital, a reputed NBFC, can help MSMEs with receivables financing.


What Is Receivable Financing?

Short-term funding that small to medium businesses can draw on using their receivables is termed as receivable financing. It allows companies to receive funding for their day-to-day expenses while waiting for their invoices to get paid.

In simple terms, this line of credit turns your receivables – including invoices or money you owed – into immediate cash. Receivables are one of the best liquid assets any company holds. They make excellent security for short-term loans needed to cover costs tied to production, materials, and even business expansion.

Luckily, Red Fort Capital offers receivable financing and approves the loan amount within 24 hours. We are quick disbursal of loans, and the ticket size of our loan is from 1Cr to 10 Cr.

Types

Accounts receivable financing is a great alternative to generate liquidity during a cash crunch as opposed to getting a business loan. Despite the fact that Accounts receivable financing can be structured into various forms, its main types include:

       Factoring: When a small to medium business sells its receivables to a third party in exchange for required funds is known as factoring. It is actually a sale of assets so that the default risk transfers to the financing firm.

       Invoice discounting: When a firm takes a loan against invoice assets is termed as invoice discounting. It allows companies to borrow funds against other funds it owes.

The best part is that Red Fort Capital offers all types of receivable financing to help MSMEs to get the desired funds to grow. Contact us now for all your business loan needs!

Can I Get Accounts Receivable Financing with Bad Credit?


You can apply for receivable financing with poor credit. Our experts at Red Fort Capital will look at your credit standing and analyze your revenue or past transactions to determine if you qualify for the loan you want.

It is important to note that if we find that the risk of non-payment is too high, we can decline the request.  But, if your past record is good and/or business growth shows an upside, we are happy to help you with the receivable financing.


Receivable Financing with Red Fort Capital


At Red Fort Capital, we specialize in receivables financing and invoice factoring for MSMEs. We are a great alternative to bank financing and can approve the loan amount within 24 hours.

No doubt that traditional financing institutions, like banks, offer receivables financing, but their process is too complicated and time-consuming. Also, some banks may sell all your invoices to lock you in a long-term contract.

But, With Red Fort Capital, you can assure of a quick loan approval process without any complications. We value every minute of your time and do our best to give you the funds you need without much delay. Our onboarding process is seamless and quick. We offer our clients flexibility and allow them transparency.

Benefits for applying for a loan at Red Fort Capital for financing needs you will get the following benefits:

 

Why Choose Red Fort Capital for Loans Against Receivables


       Flexible Loan Benefits: We offer a moratorium period of up to 6 months based on the business requirements.

       Quick Loan Disbursement: We generally disburse the loan amount within 5-10 days, depending on the due diligence.

       Long-Term Partnership: Most of our existing clients have reached out to us whenever they face any credit requirements.

A Jaipur-based transport company that has one of the largest fleets in the region, with 620 trucks. It owns trucks from MAN, Tata, Ashok Leyland, Eicher, Mahindra, and many more. Around 700 employees are working with them.

Their monthly expense for diesel is around 6-7 Cr. And the company pays salaries to employees in cash. But, being in the transport business, they only get payment from customers when delivering goods to them. According to the company, they get their payments almost 60 days later from their customers.

This raises a big concern for them as they need to need their daily expenses, buy new trucks to grow, and pay salaries to employees. So, they decided to get finance from a bank to cover the gap. But unfortunately, they are not able to get financing from banks as they have no NPA and pay salaries in cash.

Red Fort Capital not only helped them with financing but approved the loan amount, which is 8 Cr, within a week.


How to Apply for Receivable Financing


Applying for receivable financing is easy and quick with Red Fort Capital. Here are the steps to follow:

       You only need to fill out the loan application process by visiting http://www.redfortcapital.com/loan. Or, you can also send a WhatsApp message regarding the same on +91 91763 33678.

       When we receive your application or loan request, you will get a call from our experts or loan representative.

       After fulfilling the requirements, you can get approval for the business loan amount within 24 hours.

Whether you need a term loan, supply chain loan, inventory loan, or any other business loan, Red Fort Capital is here to help. Reach us now!

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