Receivable Factoring

Ever wish it was possible to use your customers' credit to reduce your risk, increase your cash flow, and make your company more money? Does it sound too good to be true? The process you've been dreaming about is called receivable factoring, and it can provide your business with the funding it needs, for a small fee and no risk to you.

Reduce your risk with receivable factoring

Account receivable factoring can help reduce your risk as a business owner in addition to supplying you with a flexible and accessible cash flow. When you sell your receivables, at a slight discount, to a factoring company, they assume the risk and responsibility for those invoices. For new or small companies, having one client renege on a payment can mean the difference between staying alive or going under. With receivable factoring, you will get cash payment for a large portion of your account receivables, without having to put down any collateral. And when the invoices are paid in full by your clients, the factoring company will pay you the remaining portion of the receivables

When you turn to receivable factoring as a financing method, you can enjoy the financial freedom that comes with a steady and flexible cash flow. Plus, many companies prefer factoring to bank loans because receivable factoring does not require you to give up some of your company's equity as collateral. All the security needed comes in the form of your account receivables.

Make more money
Your company can increase profits through receivable factoring. Because you won't have to wait 30, 60 or 90 days to receive payment for your shipped purchase orders, you can use the immediate cash that is available through receivable factoring to make your company money. Think about it. Let's say you receive 80% of the total invoice payments that you sold to a factoring company. You can put that money in the bank and collect interest on it, or you can take advantage of bulk purchasing discounts, which is another effective way of making your company money.

Some companies offer their clients "early bird" ordering specials to entice them to place their orders early so that the company will receive their payment early too. With receivable factoring, you can have payment for your shipped invoices within as little as 48 hours. You can save your company money by not offering discounts on early orders.

Your customers' credit matters
Most receivable factoring companies purchase receivables, at a discount, if the customers' credit checks are low risk. If you are considering factoring as a method of financing your business, consider your clients' creditworthiness because it will give you a broad idea of which invoices are likely to be accepted.

Unlike bank loans that may offer you loans or lines of credit based on your credit rating, receivable factoring uses your clients' credit rating as the measure of risk. You and your company do not incur any debt and your credit rating is not affected through the process of receivable factoring. This is one of the many attractive features of receivable factoring because it allows you to receive cash for company assets, but without the hassle of bank loans, personal credit checks among other things.

Start today by contacting us here or on our toll-free number. Or apply here and get the accounts receivable funding process going today!

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