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Regardless of the type of company, the end result of rapid growth is often the same: insufficient cash flow. For example, when a manufacturing company is expanding rapidly, orders are coming in almost faster than they can be filled.

The product must be brought in and shipped out to their customer as requested but their collections from Receivables is from 2 months ago significantly lower than what is going out. This same situation will happen with a placement or service type company where the staffs that they hired to perform the tasks get paid weekly, but the collection cycle from their customer is net 30, which most often is actually collected around day 45. The employer must be able to cover these costs until they have received payment from their customer.

There are many solutions for companies when they are in a cash flow restriction which range from Commercial Mortgage backed equity lines to sale lease-back of equipment to Accounts Receivable Factoring. Due to the current economic situation, banks have become more conservative than ever and if you are looking for financing with them there had better be a really strong. Other alternatives are equity financing or Angel Investors which often result in a loss of ownership to the investor " this type of financing is not for everyone.

There is another type of financing that is more and more common every day called Accounts Receivable Factoring. While it is true that Invoice Factoring has been around for hundreds of years now, coming from the textile industry initially, it growing in popularity very rapidly in all industry sectors. The reason for its increased popularity is that the company that is selling the Accounts Receivable, will receive a cash injection of up to 90% of the face value of their invoices with 48 hours of the invoice being raised rather than having to wait 60 or 90 days to collect the invoice.

The Accounts Receivable Financing Company will generally remit the initial amount up to 90% of the Invoice face value and then submit the balance of the reserve once the customer pays the invoice, less the small service fee for use of funds. The money that is advanced can be used for any purpose the company sees fit " payroll, inventory, fuel, or maintenance what ever they need the money for.

There are so many alternatives to bank loans today that are offered by Commercial Finance Brokers as they access to funds for Accounts Receivable Financing, Export Factoring, Purchase Order Finance, Commercial Equipment Loans and Commercial Real Estate Mortgages. Be sure to do you checking around into the various options available to you as there is a loan available for most circumstances if you have the right Finance Broker.