If you’ve been browsing The Commercial Finance Group’s website for a few minutes, you’ve probably noticed terms like “account receivables financing” popping up all over the place.
Understanding the role receivables financing can play in the growth and success of your business means developing a strong working vocabulary of relevant financial terms. Although you may think you know the differences between accounts payable and accounts receivable, many of our clients are surprised when the technicalities are laid out before them.
Accounts Payable Defined
‘Accounts payable’ is a term used to describe the total amount a company owes to suppliers or vendors because of goods or services purchased on credit. Because they are essentially short-term debts, accounts payable are generally considered to be liabilities.
Accounts Receivable Defined
‘Accounts receivable’ is a term used to describe the total amount that a company is owed by customers who purchased its goods or services on credit. Because they are essentially unrecovered monies, accounts receivable are considered to be assets and can be a tool for easy business financing.
The Commercial Finance Group Can Turn Your Accounts Receivable Into Cash!
If you’re struggling to cover your company’s monthly expenses while sitting on a stack of accounts receivable assets, CFG can help. Based in Atlanta, we’ve been helping companies all over the country overcome cash flow problems through accounts receivable factoring.
We agree to take on the often-annoying task of getting invoices paid and you can walk away with a nice cash settlement. Contact us to learn more about our attractive financing options today.
