Factoring account receivable invoices is the best solution for quick payments.
Factoring account receivable invoices give your business an advance payment upfront. It is a mode of financing that can help free your business from the cash-flow squeeze caused by slow-paying customers.
So How Does it Work?
A “factor”, such as ourselves purchases your invoices and immediately advances you most of the invoice amount in cash. The remainder of the invoice amount is retained by us pending collection, minus a small service fee.
This mode of financing works best for small to mid-sized companies that don’t have much collateral yet or start-ups that haven’t developed an established relationship with a bank. Factoring also fills a need for rapidly-expanding companies that are outgrowing their operating capital.
The Main Objective
The main objective of factoring account receivable invoices is to increase your working capital. In effect, we act as an accounts receivable department. This ultimately improves the profitability of your business, maintains good credit ratings for your business, allows you to take advantage of discounts for purchases, avoids interest and penalties, and funds expansion and growth plans.