Dallas, TX Businesses Find Working Capital Without Debt

Dallas, TX businesses and the surrounding areas are experiencing great momentum in the current economy. Even new businesses throughout Dallas are gaining traction the likes of which hasn’t been seen in years. However, to stay the course and grow successfully, local businesses will need a good source of working capital, preferably without debt.

Taking on debt hinders growth and sustainability

While traditional loans have long been the “go to” for additional working capital, business owners in Dallas are moving away from the debt-based model. Placing debt on the balance through a traditional loan puts a restriction on cash flow. Every month, regardless of revenue, a payment must be made on the balance owed. This means many businesses are holding back their own growth potential. Traditional loans are also risky, even in a strong economy. As we have seen in 2018, interest rate hikes on traditional loans can come out of nowhere. This year alone, interest rates on traditional loans were raised multiple times, with more potentially slated for next year. Dallas business owners need something more flexible and preferably debt-free.

Dallas businesses use AR financing

Accounts receivable financing – otherwise known as AR financing or factoring – provides an excellent source of working capital while simultaneously improving cash flow and reducing the need for loans. Every business in Dallas that issues invoices with payment schedules of 30 days or longer has revenue tied up in unpaid receivables. AR financing unlocks that revenue by converting unpaid invoices to cash within 24 hours. Because the conversion happens so quickly and the receivables themselves are used as collateral for the financing, no debt is placed on the books. Instead of waiting for revenue to trickle in from staggered payment schedules, Dallas businesses can maximize their cash flow and rapidly accumulate working capital to maintain operations and act on growth opportunities.

AR financing for Dallas, TX businesses

Because AR financing is so versatile, businesses across all industries in Dallas, TX take advantage of this debt-free financing solution. Construction companies, IT contractors, lawyers, oil and gas companies, medical facilities, and more use AR financing to maintain and grow a reliable source of working capital.

At Caedmon Commercial Capital, we provide accessible solutions tailored to the needs of business owners in Dallas, TX. To learn more about AR financing or our other programs for working capital, contact our offices today.


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