Factor Receivables

If your business is new, or has a limited credit history, choosing to Factor your Accounts Receivables can provide you with superb cashflow management benefits. And, it can actually help to build a good business credit history.

How It Works

To Factor Receivables basically means to have a financing or funding company (like Factoring Associates) provide you with a cash advance based on client invoices you provide us. These invoices effectively act as collateral for up to 80% of the invoice value. Effectively, we collect the invoice for you, providing you with "accounts receivable outsourcing", and then return the final 20% of the invoice minus our factoring fees. Our fees are explained here, but typically it can run between 1% and 5% of the total invoice. Please feel free to contact us here regarding our fees at any time.

Qualifying for Accounts Receivable Factoring

Obtaining the ability to Factor your Receivables is simple. Your company must satisfy two simple conditions. These include:

• No current primary liens on your accounts receivables
• Creditworthy customers

The first criteria for factoring basically entails that no other company has rights to claim payments as soon as your accounts receivables come in. This scenario sometimes occurs in certain industries, such as the construction industry, where several creditors are often present. Factoring Associates has a high level of experience factoring for the construction industry, and can typically fund your operations. Contacting us is the first step.

Your Customer's Credit

Unfortunately, your ability to factor receivables and therefore obtain cash for your invoices hinges greatly on your customers. The fact is, if your clients have a bad credit history that includes missed payments, bankruptcies and other credit problems, it may affect your ability to obtain invoice factoring. But, in some cases we simply charge higher factoring fees, as the risk in such transactions is heightened greatly.

How We Handle Unpaid Invoices

Depending on the transaction, we either assume all risk (which does not require you to repay us the invoice total within a set period of time), or, if the invoice is delayed greatly, we will require repayment of funds plus our fees. Typically, we agree to terms before we finance a transactions, and a number of factors (including those above), are taken into account.

Customer Care

At Factoring Associates, we recognize that customer care is of critical importance to your business. This is why we are particularly sensitive to the accounts receivables financing process. Many companies are new to the business of Factoring Receivables, so we ensure that your customers understand the process, and the fact that we are effectively providing accounts receivables collection outsourcing for you. This is an important distinction which ensures your customer relationships stay strong and profitable.

Contact us today about Factoring Receivables, or apply here to begin financing right away.

FAQ | Glossary | Process | Required Documents | Services
Accounts Receivables Outsourcing | Small Business Funding
Accounts Receivable Management | Business Receivable Factoring
Factoring Financial Services | Accounts Receivable Factoring Company
Factoring Accounts Receivables | Accounts Receivables Factoring
Questions? Call us toll-free at 1-866-860-6541.
Fax Number: 1-775-890-5714