Accounts Receivable Financing & Factoring
Control your cash flow and free up capital by
selling/factoring your accounts receivable for immediate
cash. Use factoring to take advantage of business
opportunities, buy materials and supplies, make
payroll, etc.
What is Accounts Receivable Factoring?
Accounts receivable factoring/financing
is the selling of accounts receivable or invoices
in order to secure immediate, working capital (cash).
Factoring has been used by businesses around the
world for more than four centuries to manage cash
flow.
A factor company purchases your
receivables by giving you an advance payment up
front. This advanced payment is usually 70 - 90%
of the total value of the receivables. After charging
a small fee (2% and up) the remaining balance is
released upon full receipt of payment for all the
receivables/invoices.
Why Should I Factor My Accounts Receivable?
The benefits of accounts receivable factoring/financing
are numerous:
- Fast access to cash tied up in receivables
- Obtain a source of working capital
- Relief from collections headaches caused by no-pay
and slow-pay clients
- Fill more orders
- Flexible funding program that increases as you
increase your sales
- Ability to take advantage of vendor discounts
- To have funds for payroll and taxes
- Extend credit to customers on large orders
- Buy equipment or inventory on demand
- More...
Give us a call or send an e-mail and we will explain
your factoring options.
