Accounts receivable financing can be a valuable tool for a growing business. Banks love financing accounts receivable because it is a high quality asset.
Banks will typically advance a loan equal to approximately 80% of your borrowing base. A borrowing base is eligible receivables, with downward adjustments made for high concentration or late receivables.
Banks are implicitly securing against your cash too, as it is kept in their bank and is under their control. Through the “offset” provision, a bank can use your cash balance to make themselves whole if receivables are not being collected.
Top technology company receivable lenders are Comerica Bank, Square One Bank, and CitiNational Bank.
At Kruze, we have collected a ton of info about the March 2020 COVID stimulus in our US CARES Act for Startups page.
Vanessa Kruze, a seasoned CPA, has an impressive track record prior to establishing Kruze Consulting. Her experience includes pivotal roles at Deloitte Tax and as a controller for a substantial startup with over 120 employees and $20 million in revenue. Under her leadership, Kruze Consulting has emerged as a distinguished CPA firm, recognized on the Inc 5000 list for five consecutive years, illustrating rapid growth and success in the competitive accounting landscape. Vanessa's unique approach, combining deep industry knowledge with advanced automation and software solutions, has positioned her firm as a leader in providing comprehensive accounting services to startups across the United States.
