Factoring Information will explain Factoring, also known as Accounts Receivable financing, which is a financial option offered through a factoring company. It provides services to most businesses and industries that provide a service or product to another business. The factoring company advances a cash payment to you on the value of your invoices from your customers for a small fee. The factor then collects the value of those invoices from your customer.
How Do Factoring Companies Work?
The factoring process works simply and easily. When you decide to utilize
the services offered by a factoring company, you complete an application with the requirements requested. You then decide on the accounts receivables you want to factor by using their value to collateralize the amount you wish to receive approval and funding.
Once your application is approved, you submit copies of your invoices for the factor to verify with your customer. The cash advance varies around 96-97% of the invoice’s value. You will be charged a small fee for the cost of service from the factor. The factoring company will then collect from your customer.
Which industries benefit from account receivables factoring the most?
Almost every kind of business service or industry requiring financial security can benefit from factoring. Cash flow within any company is vital for day to day financial stability.
We strive to factor Start Up’s to long established businesses. Our Factoring Network connects our financial services to over 23 regional offices throughout the US and Canada, providing funding for business to business transactions.
Please CLICK on the tab “Who We Factor” on our home page for a reference on which businesses benefit the most from factoring. We encourage you to consider factoring as your financial option, as factoring can benefit all businesses. Take the time to complete our APPLICATION, as your company will most likely qualify for approval and funding.
Why would I want to sign up for a factoring service?
The advantage to your business would be that you do not need to wait 30,60,90 days for your customers to pay their invoices to you! You will no longer have to wait and depend on payment from them to provide you with much needed cash flow. You will eliminate the worry and hassles and time spent collecting on your invoices.
The factoring process utilizes less time from initial contact to approval and funding. Not only does the process of applying for a bank loan that will incur debt have a long and uncertain result, qualifying for that loan can be difficult and worrisome. Funding from a factor can be accomplished within a few days.
Once your customer’s invoices have been verified and you receive your funds, we have the responsibility to collect from your customer. Your collection efforts disappear, so you can then focus on growing your business.