Accounts receivable financing means that enterprises transfer their accounts receivable to banks and apply for loans. The loan amount of a bank is generally 50%-90% of the face value of accounts receivable. After the enterprise transfers the accounts receivable to the bank, it shall send a transfer notice to the buyer, asking him to pay the financing bank.

The influence of accounts receivable financing on enterprises;

1. Shorten the collection cycle of enterprise accounts receivable;

2. Reduce the transaction cost of buyers and sellers;

3. improve the speed of capital turnover;

4. Improve the effectiveness of manpower utilization and avoid the trouble of manual collection;

5. Optimize enterprise accounts receivable management, and activate asset subjects other than fixed assets for enterprises;

6. Increase working capital through accounts receivable and strengthen financial dispatching ability.

Tips: The above contents are for reference only.

Reply time: 2022-0 1-25. Please refer to the latest business changes announced by Ping An Bank in official website.