What Is Invoice Factoring?
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.
Why Do Companies Use Invoice Factoring?
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.
How Does Invoice Factoring Work?
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
Why Wait 30, 60, Or 90 Days For Your Clients To Pay You?
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!
Learn more about factoring
Who needs a loan when you can factor your accounts receivable!
There is NO PAYBACK !!
You can factor as much or as little as you like!
Whenever you would like to factor all you need to do is submit to us a list of the invoices you want factored.