Frequently Asked Questions.
Is accounts receivable funding a new financing option? Accounts receivable funding is one of the oldest forms of financing. It has been around, in one form or another, for more than 2000 years. Until recently, most people thought this type of financing was limited to the textile and garment industries. Today, accounts receivable funding is a widely used and viable solution for all types of businesses that extend credit terms to their customers.
How can accounts receivable funding help my business? By selling your accounts receivable to COASTLINE you provide an immediate source of cash to your business. You can use this cash for general working capital purposes, to meet payroll, pay taxes, replenish inventory, take advantage of vendor discounts, and more.
How is accounts receivable funding from COASTLINE different from accounts receivable funding provided by a Bank? When evaluating the business opportunity, COASTLINE focuses on the creditworthiness of your customers while banks typically focus on the financial strength and history of your company. Perhaps more importantly, COASTLINE will make a quick funding decision while banks can take weeks-even months-to approve a loan.
Will accounts receivable funding interfere with my ability to obtain traditional bank financing at a later date? With COASTLINE as your financial partner your business will experience improved cash flow, reduced operating expenses and enhanced earnings. In short, our goal is to be a partner in your success and expedite your ability to obtain bank financing.
How long does it take get started? Your application will be reviewed the same day it is received and a representative will contact you within 24 hours to design a funding solution customized to your needs. You should expect to receive the initial advance into your bank account between one and three days after we receive your signed contract package. After the initial funding, you should expect to receive funds within 24 hours of offering your receivables to COASTLINE.
Does COASTLINE purchase existing receivables? Yes. In most cases, we can purchase your existing invoices.
How does this accounts receivable funding affect my relationships with my customers? We recognize that your customers are the lifeblood of your company and attempt to be as transparent as possible. Your customers are notified that you have entered into a relationship with COASTLINE to centralize and outsource your receivable and credit management functions. We act as an intermediary to improve receivable performance and address customer inquiries, not as a collection agency. Maintaining your customers goodwill and confidence are of the utmost importance to us.
Will COASTLINE verify invoices with my customers? Invoice verification is an essential, and accepted, part of any successful receivable funding relationship.