 What is Accounts Receivables Factoring?
The purchasing, for face value, of your company's invoices at a SMALL discount for the immediate cash value of those invoices. This can provide millions in working capital for your business. Factoring is a perfect alternative for entrepreneurial businesses that cannot always wait for a traditional bank loan.
How is it done?
Factoring is similar to current credit card transactions in that a merchant takes a credit card from a customer to pay his bill. The credit card company retains a small percentage for processing the bill and the business receives their funds immediately. Factoring works similarly in that the invoice is purchased and the money is provided to the business minus a small fee.
How long does it take to start?
The typical client begins factoring within 30 days of application. It can be faster, but it is important to make sure the client is comfortable with how the process works and that all of the information has been verified.
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