Receivable Financing

Receivable Financing Isn't an Option for Personal Debt

When businesses have a lot of debt that they are trying to get under control, they have the option of looking into receivable financing. Receivable financing - for those who aren't familiar with the term - is a process by which companies that cannot get approved for a loan are able to borrow against the income that they expect to make.

Unfortunately, there is no such thing as receivable financing available to those who don't run their own businesses; you can't approach your boss if you work on commission and say, "based on the sales that I have made in the past, it's likely that I will sell (a given amount) in the next six months - how about you pay me my commission on that now?"

No matter how great it would be to be able to have that money in your pocket now - especially if you're looking at a tall stack of credit card statements, invoices for medical bills, student loan payments are coming due or you have other unsecured personal loans that you are trying to pay off - it isn't really an option. Because individuals cannot take advantage of receivable financing, they need to look into other options when they want to be able to reduce and eventually eliminate their debt.

One of the primary options that people should be looking into when they want to get out from under the weight of their debt is to look into debt consolidation. By working with a debt consolidation company, you will find that you are able to:

  • Work with someone who will take the time to learn about your situation and then advocate on your behalf with your creditors.
  • Know that there is someone on your side who will be working to bring your accounts current, reduce the amount that you owe, eliminate late fees and over limit charges and to negotiate a smaller monthly payment.
  • Make a single, smaller monthly payment to your debt consolidation agency and still to know that all of your bills are being paid (no more keeping track of due dates and trying to be sure that nothing is late).
  • Focus on evaluating your spending and savings habits so that once you are out of debt, you don't repeat the same patterns that got you there in the first place.
  • Know that you are making progress and moving forward - and, if you've been feeling stuck because of your debt, this may be the most rewarding part of the experience.

In other words, even though receivable financing isn't an option when you are trying to get rid of your personal debt, there are options that are going to let you take control of your financial situation and to start eliminating the debt that you have accumulated without borrowing - which means that you won't have to exchange the debt from one creditor to another. You'll be able to take control of your finances simply by working with what you have.