Factoring, in one form or another, has been performed as a service for over one thousand years. This makes it one of the oldest forms of commercial financing. And, although the industry lacks the kind of visibility that the loan and leasing industries do, the industry does currently handle more than 50 billion dollars worth of receivable financing per year.

Factoring Defined
Factoring protects your business against customer credit losses while converting your accounts receivable to cash. Factoring is essentially a multi-faceted service that combines credit protection, A/R bookkeeping, collection services and financing.

When companies factor with Factoring Associates, we purchase their accounts receivable without recourse and assume responsibility for their customers' financial ability to pay. In effect, we extend credit to their customers, collect from them, and perform the necessary bookkeeping functions for their transactions. Factoring can be used by companies of all sizes, from startups to mature businesses. The core benefits of factoring includes improved cash flow, bad debt minimization, reduced operating expenses and greater working capital financing.

What Factoring Is Not
A key fact to remember is that factoring is not a loan. As a result, there is no "debt repayment", no balance sheet compromises, no long term agreements or the kind of delays that are associated with other methods of raising capital. Factoring allows you to use the cash your company is owed in receivables immediately, at a small fee.

Other Key Questions
Why Use Factoring?
Factoring vs. Loans
How will my customers perceive this service?

Please feel free to contact us with any questions, or apply now to begin factoring today.

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