What is Accounts Receivable Factoring?
Accounts Receivable Factoring is often mistakenly referred to as Accounts Receivable Financing, Accounts Receivable Funding or Invoice Factoring. Accounts Receivable Factoring is the purchasing of invoices at a discounted price. In doing such, our clients receive cash immediately instead of waiting to collect on 30 / 45 / 60 day payment terms.
Benefits of Accounts Receivable Factoring
Cash Flow Solution
During times of growth and expansion, cash flow becomes insufficient. Suppliers want you to prepay, and buyers want to pay you Net 30-60, which could equate to no incoming cash for up to 90 days. Accounts Receivable Factoring will give you cash immediately for your invoices.
Accounts Receivable Collection Solution
Clients transfer the risk of accounts receivable from the end buyer to the Factor. When Purchase Order Financing is combined with Accounts Receivable Factoring, the Factor takes the responsibility of collecting monies owed on the accounts receivable. The client no longer has to worry about keeping track of past due receivables.
Accounts Receivable Factoring does not require a business plan or a personal guarantee. Accounts Receivable Factoring is a quick form of cash often used for businesses demanding immediate solutions.
International Trade Finance will help you to maintain trust in your suppliers, buyers, and reduce your risky accounts. The Factor builds credit files on each of your accounts as an essential part of Accounts Receivable Factoring to advise you of possible problems with your buyers.