Your Receivables if You Sell Your Business

Selling a business involves a lot of different pieces, each of which must be dealt with before the sale can be finalized. Invoice factoring is one of those pieces. Factoring can actually make the sale of your business more profitable. You have likely built a stronger portfolio of creditworthy clients because of the factor’s requirements. This makes your business more attractive to buyers who want a strong business with a reliable customer base.

A Buyer Might Acquire the Receivables

When a business is sold, a common scenario is for the seller to retain the company cash and open receivables, while paying off the outstanding payables. The goal is to deliver the business free of debt to the buyer. This scenario works in many cases but is not ideal for all sales of businesses.

There are certain reasons why a buyer would acquire the receivables of a business:

  • It offers the buyer control over the collection of those receivables and keeps cash flowing into the business.
  • It makes the buyer immediately start dealing with the company’s existing customers.
  • It offers a seller a clean break from the business and avoids the need for open-ended accounting issues.

Of course, buying a portfolio of unpaid invoices poses a risk to the buyer. And that must be considered in the purchase price. The older the unpaid invoices are, the less likely they will be paid. Extremely late invoices may have to be written off before the purchase goes through.

We Buy Accounts Receivables

If you’ve invested time in starting and growing your business, we know that selling it is the last thing you would want to do. If your business is having cash flow issues, contact us now to find out how we can help you by buying your accounts receivable.

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Company Information

  • 281-446-5444
  • 8450 FM 1960 Bypass Rd. W.
    Suite 200
    Humble, TX 77338

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