Invoice Factoring – Use Your Accounts Receivables To Finance Your Business
Factoring is an asset based financing method whereby a company uses its account receivable to generate immediate cash flow.
A factoring company purchases your companies account receivable portfolio and will immediately advance up to 95% of its face value. The balance of the funds – less the factors fee and discount – is released back to you once the receivables are collected.
The most common thread among companies that factor is that they are, at the moment, non-bankable. In order to become bankable, a company must understand and be able to comply with the bank’s lending criteria. Frequently, this can take a significant amount of time.
Time and timing are critical issues to business owners. A factoring relationship solves this timing problem by providing the needed capital NOW.
In a factoring program, a company sells its accounts receivable to a factor to secure immediate capital that will enable the company to: Expand its Operations, Meet Payroll, Replenish Inventory and meet other near- term Obligations in a timely manner. Factoring provides the cash flow to:
Grow your Business
Capture market share
Generate more sales and profits
Negotiate better terms and prices from your suppliers
Save on the cost of credit investigation
Save on the cost of collections
Take cash discounts on your purchases
Possibly eliminate your own cash discount
We can arrange for a factoring company to purchase your A/R and advance you up to 95% of their value 24 hours after setting up your account with us!