Prepayment of Receivables – See What It Is and How It Works

If you are an entrepreneur and pay in installments for the sale of your products to customers, you would certainly like to receive the full amount for which you are entitled, within a few days, wouldn't you?

This for some business owners may even seem like an impossible dream, but it is worth saying that this is quite possible.

Through something called “anticipation of receivables”, you can basically have the money you would receive in a matter of months, in your hand in a few days.

If you are interested in knowing more details about it, then continue checking all the content that we have prepared for you through this article.

Prepayment of receivables - What is it and how does it work?

As we previously made clear, this term “anticipation of receivables” is something very interesting for business owners, isn't it?

Through it, reinforcing what we have already made clear, you can have all the money you would receive after a certain time, due to a debt in installments, in your hands in a much shorter period.

However you exactly how does this work?

At first, it is interesting to make it clear that the prepayment of receivables is a line of credit.

The line of credit in question can be very advantageous for companies in several matters.

Issues that are obviously financial.

That is, when your business needs money to:

• pay the bills;
• invest in space optimization;
• cash flow generation;

Or for the realization of several other things, anticipation can be quite valid.

However, it is important to make it clear that to use it, some care is recommended.

Care that, in turn, is focused on planning.

This is because you will now have money that in some way could be useful in the future.

Therefore, it is important to pay attention to what the value will be applied to.

In a very playful way, we will explain how the prepayment of receivables works.

If a certain customer has spent “x” amount on such purchase, and then the installment in 4 installments, you will have access to the total amount within about 120 days, right?

However, with this advance of receivables, you can access the full purchase price in a matter of days, not months.

Quite an attractive alternative, isn't it?

And that's precisely why you should be careful.

Care must be redoubled, especially after you find out that for this, certain interest rates are applied.

Anticipation of receivables - How can I get it?

Now that you know what prepayment of receivables is about, we can highlight how you can obtain it.

Obviously, the process varies according to the financial company through which you will apply for the line of credit.

However, it can be said that there is a pattern by which they go together.

At first, obviously you must choose a bank, or a fintech to be the request.

For this, you must check what are all the conditions imposed, including the interest rate.

In addition, the deadline is also an extremely important matter to know.

Next, you will need to register your credit card machine information on the company's digital platform.

Also, the account you want the money to fall into must also be informed.

The anticipation of receivables may be related not only to credit card purchases, but also to post-dated checks and bills of exchange.

It is interesting to point out that there are other names that can be attributed to this same term of “anticipation of receivables”.

Some of them are: advance of receivables and discount of bills.

That is, when you see one of them you will already know what it is about.

So, do you think that the anticipation of receivables is worthwhile for your business?