Accounts receivable financing (A/R program) is a way for professionals to protect their largest asset, accounts receivable (A/R). These assets sometimes take up to 90 days or longer to mature. This makes the A/R vulnerable to creditors. In sum, the A/R program can be beneficial for professionals because A/R are:
- » Non-interest bearing; and
- » Subject to the claims of creditors
Why use an accounts receivable financing program?
The A/R program is a way to protect assets, diversify a portfolio, and create a legacy for generations to come. It converts unprotected and non-income producing assets into assets that are secured and protected from creditors. The single premium immediate annuity (SPIA) will generate the guaranteed income needed to purchase the life insurance policy and prevent a modified endowment contract. The life insurance policy provides the security and protection the clients need.
Contact us to learn more about accounts payable financing programs available through Provada.
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