Accounts receivable factoring is the selling of your invoice information (accounts receivable) for cash versus waiting 30-60 days to be paid by your customer. Factoring will get you the working capital necessary to improve your cash flow. Factoring-Company.us will advance up to 85% against the invoice you generate and pay you the balance less our fee (typically 3-6%) when the invoice is paid. In order to process the invoice we will need the customer information typically found on the invoice and the original invoice or copy of the invoice. This whole process can be accomplished to get you funded within 24-48 hrs once the information on the invoice is verified.
Factoring is selling the interest in your accounts receivables or invoices to a factor at a small discount. Sometimes factoring is called "accounts receivables financing". Factoring provides over 100 billion dollars to industry each year. It is interesting to note, that the factoring business has been around for centuries. Factoring information is an old financial service used by multi-billion dollar corporations that is now available to smaller sized businesses to which banks are reluctant to lend funds. Factoring is filling a tremendous void that banks have created.
We hope you find this factoring information helpful in determining whether or not invoice financing will work for your company. Other types of financing generally require two years in business and showing a profit. Factoring does not have this limitation. Young, growing companies or those with tax liens and even bankruptcy can still qualify for accounts receivables purchasing lines. Not much information is needed to get started.
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