FAQ

Frequently Asked Questions

Q) What is Accounts Receivable Factoring (AR) or Factoring?

A) Accounts receivable financing, or Factoring, is the purchase of accounts receivable invoices at a discount. If you sell your products or services to businesses that pay in 30, 60, 90 days or more, R&D Finance has a liquidity solution for you. We can finance companies that are start-ups, losing money, or in bankruptcy because accounts receivable financing is based on your customers credit, not yours. This is not a debt, you are selling an asset. But it is more than just an asset sale; it is like outsourcing your accounts receivable department. Factors provide valuable services. They check your customers credit for you and notify you of bad risks and they provide detailed monthly statements. Qualifying accounts even get free credit insurance. APPLY TODAY ON-LINE

Q) What is the big difference between an SBA Loan and a USDA Rural Development Loan?
A) The biggest difference is that The Rural Development Loan aka the Business and Industry Guaranteed Loan Program (B&I) provides up to 80% of the loans made be eligble commercial lenders for job creation and economic development projects in rural areas with Populations <50,000 people. Both programs are very similar in documentation and elegibility. The USDA Rural Development Loan has restrictions for example it cannot be used for the production of agriculture products.

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