Factoring Accounts Receivable

Here are some primary advantages to factoring your accounts receivable (invoices):

Cash Availability

By factoring your account receivables into instant cash, many positive reactions occur.

Your ability to:

• pay suppliers
• buy in bulk
• make payroll
• no new debt
• no additional collateral

These are only a fraction of what factoring can enable your company to realize.

Growth Potential

When factoring your receivables, you get instant cash that would have been tied up for 30 days or more, increasing cash flow. This cash can then be used for expansion needs, such as buying more inventory or adding onto a building for your expanding company. Our services can and do energize your cash flow.

Debt Reduction

Instant cash flow allows your company to greatly reduce to overhead from debt. Allowing bills to be paid in a timelier manner, increasing you credit worthiness.

Provides fast financing.

Accounts receivable factoring doesn't require a business plan like a bank would require to get a loan. So it's a relatively fast and painless way to obtain cash quickly.

How It Works

1. You send the original invoices with proof of delivery or performance. The goods must have been delivered or service performed.
2. The invoice is verified and then the advance is funded, typically 75% to 90% of the invoice face value. Funds are transferred to your bank account after the verification of the invoice(s). This is usually completed within 24 hours of receipt. The remaining balance of the invoice is held in reserve. The reserve is held back until your customer pays the invoice in full.
3. Payment of the invoices are sent and made out to us from your customer. Once received, the reserve is paid to you less the discount fee. The discount fee is based on the timeframe the invoice advance is outstanding.
4. The reserve is sent directly to you via bank wire or check, it’s your choice.
5. Credit checks for your new clients are completed at no additional cost to you. It’s free.