What exactly is factoring?
Factoring is the purchase of your accounts receivable (invoices) in order to provide you with the cash flow you need when you need it. Factoring is a widely accepted business practice used by large, mid-sized, and small companies. In most cases, we can have you the cash you need in 48 hours. Once you've established your account, the process takes just 24 hours.
Factoring is a broadly accepted financial tool for accelerating cash flow and avoiding the problems associated with slow-paying customers. Factoring makes cash available for business growth and expansion. We purchase your accounts receivables at a small discount and give you immediate cash. Factoring is not a loan so there is no debt repayment. Your own accounts receivables are turned into cash.
With factoring, your company has access to funds that would not be available during a normal billing cycle. Factoring is also known as accounts receivable factoring; receivable lending; accounts receivable loans; invoice factoring; receivables based factoring; discretionary factoring; accounts receivable financing. Factoring is a solution to cash flow problems for businesses. It is the process of selling your accounts receivables (invoices) to a third party at a discount. Factoring turns invoices into cash in order to increase cash flow. It accelerates cash flow to fuel the growth of your business.
