Financing options for SMEs with outstanding receivable accounts

Growing your small or medium sized business is imperative to your ongoing success.

At times, you might find that you need some additional financing to drive you forwards.

If your SME has outstanding receivable accounts, you might find it difficult to obtain the financing you need.

While there are countless options for start-up funding, finding the financing you need as an established SME can be tricky. We take a look at financing options you could consider.

Invoice financing

Invoice financing, often referred to as “factoring”, is when a B2B financing service provider fronts you the cash from your outstanding receivable accounts.

When you are finally paid by your customers, you repay the factoring amount and settle the bill. This finance option works as it keeps your cash flow going while you await customer payments.

Business banking financing

Talking to your businesses bank could help you secure traditional financing when your business needs it. Although business loans will incur interest rates, they are a secure way to get the funding you need.

However, banks might not always offer you the financing you need, so looking at all your options is important.

Venture capital funds

Groups of high-net-worth individuals often come together in groups and form venture capital funds. These funds are set up to invest in SMEs that have potential for huge economic growth.

Working with a venture capital fund can help you to get access to financing and the support you need to help your business flourish in the future.


If your SME sells a consumer product that people crave, you could consider crowdfunding as part of your financial strategy.

Sites such as Kickstarter and Go Fund Me have helped numerous entrepreneurs obtain the funding they desperately need.

Crowdfunding works by allowing customers to “invest” in your business in incremental amounts. Often in exchange for early product releases or discounts.

Partner financing

Partner financing can be extremely beneficial to growing SMEs. Essentially, partner financing comes from another key player within your industry, providing you the support and funding you need to grow.

Finance partners also get access to your product, staff, distribution rights and sales. It is important to consider whether this level of access is worth it for your business.

Regardless of your SMEs outstanding accounts receivable, you could still get the funding you need to thrive in your marketplace.

Whichever funding route you choose, remember to consider all the implications and only get into a financial agreement when you’re sure of the particulars.