ACCOUNTS RECEIVABLE FACTORING

AccountS receivable funding is the selling of interest in your invoices or receivables to a private investor, or factor, at a small discount. Account Receivables (A/R) funding provides over $200 Billion dollars to the Industry each year. In fact, factoring is a centuries old financial service used by multi-billion dollar corporations that is now available to smaller sized businesses, to whom banks are usually reluctant to lend funds. Receivables financing fills a tremendous void.

The Invoices to your customers for goods delivered or services rendered can be converted into a "Credit Line" from which you may draw cash to better manage your business. Draw only as much as you need and pay only for what you use.

Most of the time, companies work with a cash flow consultant (or broker) to locate and work with factors. The cash flow consultant can locate the best lender for a particular customer, that will save the customer money in the long run.

Factoring is also available to contractors and sub-contractors in the construction business. Many contractors have to wait 30, 60 days or longer to receive payment for a completed job. Factoring can expedite that payment to 24 to 48 hours. This enables the contractor to pay his employees quickly and move on to the next job, pay bills, buy equipment or expand his or her's business.

Approval is based on the credit worthiness of your client, so don't be concerned about being turned down. Even if you have had a bankruptcy, tax liens or slow pays, we can get you funded through our investors within 5 to 10 working days provided your customers are approved for funding. 

Factors can help you manage the swings in cash flow by getting you your money now; and creating a line of credit based on your receivables rather than waiting 30, 45 or 60 days. Your suppliers get paid quickly, so that you can negotiate the best pricing. In many instances, the ability to take discounts and get better pricing will make up for the cost of factoring.

The difference between advance funding with a private investor and a bank loan is that in factoring you use your customer’s credit line as leverage, not yours. A bank loan is based only on your assets and the ability to repay the loan . When you factor, there is no loan to repay.  Your growth potential is based on your credit worthy customers and it is virtually unlimited. The more credit worthy customers you sell the higher your credit line becomes.

Benefits Of AccountS Receivable Factoring

Contact us today if you need more info!

info@accountsreceivablesfactoring.net

 

We are proud to be an outstanding member of the
            American Cash Flow Association.

 

Account Receivables Factoring | Accounts Receivables Factoring Works For Your Business