What is Accounts Receivable Factoring?
Receivable Factoring is often mistakenly referred to as Accounts
Receivable Financing, Accounts Receivable Funding or Invoice
Factoring. Accounts Receivable Factoring is the purchasing
of invoices at a discounted price. In doing such, our clients
receive cash immediately instead of waiting to collect on
30 / 45 / 60 day payment terms.
Benefits of Accounts Receivable Factoring
Cash Flow Solution
During times of growth and expansion, cash
flow becomes insufficient. Suppliers want you to prepay, and
buyers want to pay you Net 30-60, which could equate to no
incoming cash for up to 90 days. Accounts Receivable Factoring
will give you cash immediately for your invoices.
Receivable Collection Solution
Clients transfer the risk of accounts receivable from the
end buyer to the Factor. When Purchase Order Financing is
combined with Accounts Receivable Factoring, the Factor takes
the responsibility of collecting monies owed on the accounts
receivable. The client no longer has to worry about keeping
track of past due receivables.
Accounts Receivable Factoring does not require a business
plan or a personal guarantee. Accounts Receivable Factoring
is a quick form of cash often used for businesses demanding
International Trade Finance will help you to maintain trust
in your suppliers, buyers, and reduce your risky accounts.
The Factor builds credit files on each of your accounts as
an essential part of Accounts Receivable Factoring to advise
you of possible problems with your buyers.