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What is Factoring?
Factoring is the purchase of account’s receivable at a discount. Account’s receivable factoring is often the fastest way for a business to collect on generated invoices other than “cash and carry” or C-O-D.
Usually a business or company must wait 30-90 days to collect on invoices generated for products delivered or services rendered. This can put you in a bit of a cash-crunch making it difficult to run your business, or begin fulfilling your next order because you haven't yet been paid for the last one!
The process is simple, fast and does not create debt. Accounts are usually funded within 4 to 48 hrs by wire to the client company’s bank. The factor will notify the client’s customer(s) that the invoice(s) have been purchased. The factor collects on the invoices and pays the company, less his percentage.
There are a lot of different factoring companies out there, some better than others - If you are interested in speaking with one with no upfront fees and low rates, let me know. I'll introduce you.
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