Off-Balance Sheet Financing (OBSF) is not just an accounting term, it’s also a useful tool that all business owners looking to access additional working capital should investigate.
Artificial Intelligence (AI)describes OBSF as, “a strategy used to manipulate a balance sheet to lower or improve ratios, avoid triggering negative debt covenants or to access additional working capital”. It lists the tools as; Operating Leases, Sale Leaseback, Joint Ventures and Offshore Entities.
None of that is very helpful without mentioning the most widely used form of OBSF, Factoring or Selective Invoice Discounting (SID). For turnarounds or rapid growth situations they are often the ideal option.
Factoring programs are easier to use and less expensive than ever thanks to technology and global competition. The flexibility of SID is now an option for a lot of business owners who don’t even know it’s available and it’s my job to make sure they do.
Total reliance on the internet or AI for information is a mistake. True Viking Finance offers Actual experience (AE) to help it’s clients to explore all their financing options so they can confidently make better decisions.