Accounting Receivable Factoring.The Hottest Factoring Plan Available!

More Factoring Information

Are long billing cycles putting a strain on your business cash flow? Despite increasing sales, does the management of receivables and payables seem like a juggling act? Could your business increase sales by offering better terms to your new and larger customers? Are you spending too much time collecting from slow paying customers and not enough time building your business? Is the bank turning you down for traditional financing due to years in business, profitability, lack of assets, personal guarantees and financial strength?

Have you considered turning away new business due to slow cash flow?

These are challenges many businesses face that can be solved with Factoring.

Is Account Receivable Factoring for You?

As a small business owner, you know first hand the struggle of attaining capital to finance the growth of your business or meet cash flow shortages. When regular small business financing such as loans and credit are limited, some business owners will turn to accounts receivable financing. Is accounts receivable financing right for your business?

Accounts receivable financing is the selling of outstanding invoices or receivables at a discount to a finance or factoring company that assumes the risk on the receivables and provides quick cash to your business. The amount of value assigned to the account depends on the age of a receivable. A more current invoice will pay more. Any accounts receivable over 90 days typically are not financed. Accounts receivable financing is also known as accounts receivable factoring or accounts receivable funding.

We are currently provide factoring business services nationwide including the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho State, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

More Account Receivable Factoring Information

accounts receivable factoring
factoring company

Top 50 Cities for Account Receivable Factoring

New York, New York (pop 8,084,316)

Los Angeles, California Factoring Business Company (pop 3,798,981)
Florida accounts receivable factoring

Chicago, Illinois Factoring Company (pop 2,886,251)
Houston, Texas Factoring Company (pop 2,009,834)
Philadelphia, Pennsylvania Factoring Company (pop 1,492,231)

California accounts receivable factoring

Phoenix, Arizona Factoring Business Company (pop 1,371,960)

Georgia accounts receivable factoring

San Diego, California Factoring Company (pop 1,259,532)
Dallas, Texas Factoring Company (pop 1,211,467)

Illinois accounts receivable factoring

San Antonio, Texas Factoring Business Company (pop 1,194,222)
Detroit, Michigan Factoring Company (pop 925,051)
San Jose, California Factoring Company (pop 900,443)
Indianapolis, Indiana Factoring Company (pop 783,612)

Michigan accounts receivable factoring

San Francisco, California Factoring Company (pop 764,049)
Columbus, Ohio Factoring Company (pop 725,228)
Austin, Texas Factoring Company (pop 671,873)
Baltimore, Maryland Factoring Business Company (pop 638,614)
Milwaukee, Wisconsin Factoring Company(pop 590,895)
Boston, Massachusetts Factoring Company (pop 589,281)
Washington, District of Columbia Factoring Company (pop 570,898)
El Paso, Texas Factoring Company (pop 577,415)
Seattle, Washington Factoring Company (pop 570,426)
Denver, Colorado Factoring Company (pop 560,415)
Charlotte, North Carolina Factoring Company (pop 580,597)
Fort Worth, Texas Factoring Company (pop 567,516)

Texas accounts receivable factoring

Portland, Oregon Factoring Company (pop 539,438)
Oklahoma City, Oklahoma Factoring Company (pop 519,034)

New York accounts receivable factoring

Tucson, Arizona Factoring Company (pop 503,151)
New Orleans, Louisiana Factoring Company (pop 473,681)
Washington accounts receivable factoring

Las Vegas, Nevada Factoring Company (pop 508,604)
Cleveland, Ohio Factoring Company (pop 467,851)
Long Beach, California Factoring Company (pop 472,412)
Albuquerque, New Mexico Factoring Company (pop 463,874)
Kansas City, Missouri Factoring Company (pop 443,471)
Fresno, California Factoring Company (pop 445,227)
Virginia Beach, Virginia Factoring Company (pop 433,934)
Atlanta, Georgia Factoring Company (pop 424,868)
Sacramento, California Factoring Company (pop 435,245)
Oakland, California Factoring Company (pop 402,777)
Mesa, Arizona Factoring Company (pop 426,841)
Tulsa, Oklahoma Factoring Company (pop 391,908)
Omaha, Nebraska Factoring Company (pop 399,357)
Minneapolis, Minnesota Factoring Company (pop 375,635)
Honolulu, Hawaii Factoring Company (pop 378,155)
Colorado Springs, Colorado Factoring Company(pop 371,182)
St. Louis, Missouri Factoring Company (pop 338,353)
Wichita, Kansas Factoring Company(pop 355,126)
Santa Ana, California Factoring Company (pop 343,413)
Pittsburgh, Pennsylvania Factoring Company (pop 327,898)
Arlington, Texas Factoring Company (pop 349,944)
Cincinnati, Ohio Factoring Company (pop 323,885)
Anaheim, California Factoring Company (pop 332,642)
Toledo, Ohio Factoring Company (pop 309,106)
Buffalo, New York Factoring Company (pop 287,698)
St. Paul, Minnesota Factoring Company (pop 284,037)
Corpus Christi, Texas Factoring Company(pop 278,520)
Aurora, Colorado Factoring Company (pop 286,028)
Raleigh, North Carolina Factoring Company (pop 306,944)
Newark, New Jersey Factoring Company (pop 277,000)
Lexington-Fayette, Kentucky Factoring Business Company (pop 263,618)
Anchorage, Alaska Factoring Company (pop 268,983)
Louisville, Kentucky Factoring Company (pop 251,399)
Riverside, California Factoring Company (pop 274,226)
Bakersfield, California Factoring Company (pop 260,969)
Stockton, California Factoring Business Company (pop 262,835)
Birmingham, Alabama Factoring Company (pop 239,416)
Jersey City, New Jersey Factoring Company (pop 240,100)
Norfolk, Virginia Factoring Company (pop 239,036)
Baton Rouge, Louisiana Factoring Business Company (pop 225,702)
Hialeah, Florida Factoring Company (pop 228,149)
Lincoln, Nebraska Factoring Company (pop 232,362)
Greensboro, North Carolina Factoring Company(pop 228,217)
Plano, Texas Factoring Company (pop 238,091)
Rochester, New York Factoring Company (pop 217,158)
Glendale, Arizona Factoring Company (pop 230,564)
Akron, Ohio Factoring Company (pop 214,349)
Garland, Texas Factoring Company(pop 219,646)
Madison, Wisconsin Factoring Company (pop 215,211)
Fort Wayne, Indiana Factoring Company(pop 210,070)
Fremont, California Factoring Company(pop 206,856)
Scottsdale, Arizona Factoring Company (pop 215,779)
Montgomery, Alabama Factoring Company (pop 201,425)
Shreveport, Louisiana Factoring Company (pop 199,033)
Lubbock, Texas Factoring Company (pop 203,715)
Chesapeake, Virginia Factoring Company(pop 206,665)
Mobile, Alabama Factoring Company (pop 194,862)
Des Moines, Iowa Factoring Company (pop 198,076)
Grand Rapids, Michigan Factoring Company (pop 196,595)
Richmond, Virginia Factoring Company (pop 197,456)
Yonkers, New York Factoring Company (pop 197,234)
Spokane, Washington Factoring Company (pop 196,305)
Augusta-Richmond County, Georgia Factoring Company (pop 193,101)
Glendale, California Factoring Company (pop 199,430)
Tacoma, Washington Factoring Company (pop 197,553)
Irving, Texas Factoring Company (pop 196,119)
Huntington Beach, California Factoring Company (pop 193,799)
Arlington, Virginia Factoring Company (pop 189,927)
Modesto, California Factoring Companya (pop 203,555)
Durham, North Carolina Factoring Company(pop 195,914)
Boise, Idaho Factoring Business Company (pop 189,847)
Winston-Salem, North Carolina Factoring Company (pop 188,934)

Imagine flexbility that no one else offers. Unlike the others, you choose what works best for you; you sign no long-term contracts; you pay no fees when your account is inactive. You set up your contract to meet your cash flow needs, not ours. You can choose between using our most advanced technology or using the old-fashioned systems - we maintain both for you. Unlike the others, our objective is not to force you to conform to us, but to get you the cash you need in the quickest and most efficient manner.

We offer cash advance rates of up to 97% -- exceeding industry norms by 20%. The typical maximum in the factoring industry is 70-80%. We can offer these great rates because of our unique and flexible combination of bank and private financing.

Our same day funding policy gets cash out to you within 12-24 hours. You have the cash when you need it, which will help keep your business moving.

Please contact us today and our seasoned invoice factoring professionals will help you get the cash you need today.
- Call us at 1-800-986-1859, or
- Email us, or
- Complete the Online Invoice Factoring Request Form

What you need to know about
changing accounting receivable factoring companies.

Looking for a new factoring company?
Unhappy with your current factor?
What do I need to know if I want
to change factoring companies?

Here are the answers to these questions and more:

What is a UCC and how does it apply
to me wanting to change factoring companies?
It is standard industry practice for a factoring company to file a blanket Uniform Commercial Code (UCC) to secure the factor’s first position security interest on the invoices funded.

The UCC is a way for factoring companies, banks and commercial lenders to keep straight who is lending on what assets. Because receivables change on daily basis as new invoices collect and old invoices are paid, factors must file what is called a “blanket” UCC filing collateralizing all of your receivables even though you may only be factoring a portion of your sales.

It’s simply impossible for factors to file a new UCC for each invoice funded. The UCC is simply a flag for other lenders who chose to run a search indicating a Security Agreement exists between your company and the factoring company.

The details of your particular factoring arrangement, such as rates and which accounts are factored, are outlined in the Security Agreement itself which is not public not.
A UCC is similar to a first mortgage on your business.

Because a discount factor extend credit not to their clients but to their clients' customers, they are more concerned about the customers' ability to pay than the client's financial status. That means a company with creditworthy customers may be able to factor even if it can't qualify for a loan.

Benefits of Accounts Receivable Financing

Pass off Collections: Outsourcing your accounts receivable management to another company, frees up your resources to focus on other more productive activities such as selling.

Free up Working Capital: Many companies have the majority of capital tied up in inventory. Accounts receivable funding allows a company to free up capital tied up in inventory.

Quick Financing: Accounts receivable factoring will not require a business plan or tax statements. It's a quick form of cash often used for businesses experiencing a cash crunch.

While these are some of the many benefits to invoice factoring your accounts receivable, there are potential drawbacks to using this method to finance your small business. One of the biggest factors of accounts receivable financing is the cost. A 5% discount fee and other charges might not seem high this month, but over the course of a year the costs can greatly exceed the interest on bank credit or a loan. Rates will vary among companies shop for the best deal and contract.

Before you embark on using accounts receivable financing for your small business, consider the following questions:

We offer tailored processing systems

You can choose to use the latest in technology- based processing systems
or the old-fashioned paper-based ones
or a combination.

Unlike the others
we don't force you into a box

We will tailor our account receivable financing programs to help you make more cash.
truck factoring

freight factoring

trucking factoring

freight bill factoring

Unlike the others
you get to choose
what works best for you.

We can do this because we have the knowledge,experience,
systems, and
one-of-a-kind financing that is unique in the factoring industry.

Discount Factoring is not a loan; it does not create a liability on the balance sheet or encumber assets. It is the sale of an asset - in this case, the invoice. And while discount factoring is considered one of the most expensive forms of financing, that's not always true. Yes, when you compare the discount rate a discount factor charges against the interest rate banks charge, factoring costs more. But if you can't qualify for a loan, it doesn't matter what the interest rate is.

Accounts Receivable Financing

Accounts receivable financing is most often used by businesses facing short-term cash flow problems. The major source of accounts receivable financing for small businesses are commercial finance companies, although banks will also consider receivables as security for a business loan.

Accounts receivable are typically "aged" by the borrower before a value is assigned to them. The older the account, the less value it has. For example, financiers often lend approximately 75 percent of the face value of accounts less than 30 days old. Some lenders don't pay attention to the age of the accounts until they are outstanding for over 90 days, and then they may refuse to finance them. Other lenders apply a graduated scale to value the accounts so that, for instance, accounts that are from 31-60 days old may have a loan-to-value ratio of only 60 percent, and accounts from 61-90 days old are only 30 percent. Delinquencies in the accounts and the overall creditworthiness of the account debtors may also affect the loan-to-value ratio.

Factoring refers to a practice whereby you sell your receivables for a discount before they are due. Historically, factoring has been heavily used in some industries, such as the garment industry, and less in others. Today, however, entrepreneurial factoring companies are willing to buy creditworthy receivables from just about any industry.

What is Accounts Receivable Financing?

Accounts receivable financing is the selling of outstanding invoices or receivables at a discount to a finance or factoring company that assumes the risk on the receivables and provides quick cash to your business. The amount of value assigned to the account depends on the age of a receivable. A more current invoice will pay more. Any accounts receivable over 90 days typically are not financed.

syou may be a candidate for a discount factor if your company regularly generates commercial invoices and you could benefit from reducing the time receivables are outstanding. Discount Factoring may provide the cash you need to fund growth or to take advantage of early-payment discounts suppliers offer.

Although discount factoring offers financial flexibility and reduced risk, exporters should be aware of certain limitations:discount Factoring works best for both new and is already established companies and wants the flexibility of selling on open account.

A Discount Factor generally will not take on a client for a one-time deal, and may require access to a certain volume of the exporter's yearly sales. A discount Factor generally do not work with receivables having greater than 180-day terms.

In discount factoring, the exporter avoids tying up working capital and spending substantial amounts of time in administering receivables. The discount factor assumes financial ability of the customer to pay, and in addition, performs the administrative duties of collections on the receivables. Since discount factors generally have vast networks and contacts overseas, as well as extensive experience in the business, they can conduct these activities easily and at a manageable cost.

Accurately assessing credit risk is really the essential
part of our factoring business. Few, if any, business clients
can perform this function as objectively as we will.

For no additional fee, we act as your credit
department for new and existing customers.
This provides you with a huge advantage over
in-house performance of these functions.

Consider the scenario where a salesperson has
a new account with a potential for large purchases.
The salesperson wants the business-so much so that
he or she may overlook red flags associated with credit
difficulties. The salesperson may even walk the
account through your own internal credit checking
procedures, in order to side step established controls.
While this may get you the sale, it won't get the money,
and with no money, there is no sale.

This will not happen with us. We make credit decisions
with full knowledge of the new customer's credit situation.
We will not buy the invoices of a poorly-rated customer
and risk nonpayment. But don't look upon our participation
as a tightening of credit to the extent that your business
will be affected in a way that is beyond your control.
If you have a new customer with questionable
creditworthiness, the decision to do business
with that person is still yours.


	More Factoring Information Are long billing cycles putting a strain on your business cash flow? Despite increasing sales, does the management of receivables and payables seem like a juggling act? Could your business increase sales by offering better terms to your new and larger customers? Are you spending too much time collecting from slow paying customers and not enough time building your business? Is the bank turning you down for traditional financing due to years in business, profitability, lack of assets, personal guarantees and financial strength? Have you considered turning away new business due to slow cash flow? These are challenges many businesses face that can be solved with Factoring. Is Account Receivable Factoring for You? As a small business owner, you know first hand the struggle of attaining capital to finance the growth of your business or meet cash flow shortages. When regular small business financing such as loans and credit are limited, some business owners will turn to accounts receivable financing. Is accounts receivable financing right for your business? Accounts receivable financing is the selling of outstanding invoices or receivables at a discount to a finance or factoring company that assumes the risk on the receivables and provides quick cash to your business. The amount of value assigned to the account depends on the age of a receivable. A more current invoice will pay more. Any accounts receivable over 90 days typically are not financed. Accounts receivable financing is also known as accounts receivable factoring or accounts receivable funding. We are currently provide factoring business services nationwide including the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho State, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. More Account Receivable Factoring Information accounts receivable factoring factoring company Top 50 Cities for Account Receivable Factoring New York, New York (pop 8,084,316) Los Angeles, California Factoring Business Company (pop 3,798,981) Florida accounts receivable factoring Chicago, Illinois Factoring Company (pop 2,886,251) Houston, Texas Factoring Company (pop 2,009,834) Philadelphia, Pennsylvania Factoring Company (pop 1,492,231) California accounts receivable factoring Phoenix, Arizona Factoring Business Company (pop 1,371,960) Georgia accounts receivable factoring San Diego, California Factoring Company (pop 1,259,532) Dallas, Texas Factoring Company (pop 1,211,467) Illinois accounts receivable factoring San Antonio, Texas Factoring Business Company (pop 1,194,222) Detroit, Michigan Factoring Company (pop 925,051) San Jose, California Factoring Company (pop 900,443) Indianapolis, Indiana Factoring Company (pop 783,612) Michigan accounts receivable factoring San Francisco, California Factoring Company (pop 764,049) Columbus, Ohio Factoring Company (pop 725,228) Austin, Texas Factoring Company (pop 671,873) Baltimore, Maryland Factoring Business Company (pop 638,614) Milwaukee, Wisconsin Factoring Company(pop 590,895) Boston, Massachusetts Factoring Company (pop 589,281) Washington, District of Columbia Factoring Company (pop 570,898) El Paso, Texas Factoring Company (pop 577,415) Seattle, Washington Factoring Company (pop 570,426) Denver, Colorado Factoring Company (pop 560,415) Charlotte, North Carolina Factoring Company (pop 580,597) Fort Worth, Texas Factoring Company (pop 567,516) Texas accounts receivable factoring Portland, Oregon Factoring Company (pop 539,438) Oklahoma City, Oklahoma Factoring Company (pop 519,034) New York accounts receivable factoring Tucson, Arizona Factoring Company (pop 503,151) New Orleans, Louisiana Factoring Company (pop 473,681) Washington accounts receivable factoring Las Vegas, Nevada Factoring Company (pop 508,604) Cleveland, Ohio Factoring Company (pop 467,851) Long Beach, California Factoring Company (pop 472,412) Albuquerque, New Mexico Factoring Company (pop 463,874) Kansas City, Missouri Factoring Company (pop 443,471) Fresno, California Factoring Company (pop 445,227) Virginia Beach, Virginia Factoring Company (pop 433,934) Atlanta, Georgia Factoring Company (pop 424,868) Sacramento, California Factoring Company (pop 435,245) Oakland, California Factoring Company (pop 402,777) Mesa, Arizona Factoring Company (pop 426,841) Tulsa, Oklahoma Factoring Company (pop 391,908) Omaha, Nebraska Factoring Company (pop 399,357) Minneapolis, Minnesota Factoring Company (pop 375,635) Honolulu, Hawaii Factoring Company (pop 378,155) Colorado Springs, Colorado Factoring Company(pop 371,182) St. Louis, Missouri Factoring Company (pop 338,353) Wichita, Kansas Factoring Company(pop 355,126) Santa Ana, California Factoring Company (pop 343,413) Pittsburgh, Pennsylvania Factoring Company (pop 327,898) Arlington, Texas Factoring Company (pop 349,944) Cincinnati, Ohio Factoring Company (pop 323,885) Anaheim, California Factoring Company (pop 332,642) Toledo, Ohio Factoring Company (pop 309,106) Buffalo, New York Factoring Company (pop 287,698) St. Paul, Minnesota Factoring Company (pop 284,037) Corpus Christi, Texas Factoring Company(pop 278,520) Aurora, Colorado Factoring Company (pop 286,028) Raleigh, North Carolina Factoring Company (pop 306,944) Newark, New Jersey Factoring Company (pop 277,000) Lexington-Fayette, Kentucky Factoring Business Company (pop 263,618) Anchorage, Alaska Factoring Company (pop 268,983) Louisville, Kentucky Factoring Company (pop 251,399) Riverside, California Factoring Company (pop 274,226) Bakersfield, California Factoring Company (pop 260,969) Stockton, California Factoring Business Company (pop 262,835) Birmingham, Alabama Factoring Company (pop 239,416) Jersey City, New Jersey Factoring Company (pop 240,100) Norfolk, Virginia Factoring Company (pop 239,036) Baton Rouge, Louisiana Factoring Business Company (pop 225,702) Hialeah, Florida Factoring Company (pop 228,149) Lincoln, Nebraska Factoring Company (pop 232,362) Greensboro, North Carolina Factoring Company(pop 228,217) Plano, Texas Factoring Company (pop 238,091) Rochester, New York Factoring Company (pop 217,158) Glendale, Arizona Factoring Company (pop 230,564) Akron, Ohio Factoring Company (pop 214,349) Garland, Texas Factoring Company(pop 219,646) Madison, Wisconsin Factoring Company (pop 215,211) Fort Wayne, Indiana Factoring Company(pop 210,070) Fremont, California Factoring Company(pop 206,856) Scottsdale, Arizona Factoring Company (pop 215,779) Montgomery, Alabama Factoring Company (pop 201,425) Shreveport, Louisiana Factoring Company (pop 199,033) Lubbock, Texas Factoring Company (pop 203,715) Chesapeake, Virginia Factoring Company(pop 206,665) Mobile, Alabama Factoring Company (pop 194,862) Des Moines, Iowa Factoring Company (pop 198,076) Grand Rapids, Michigan Factoring Company (pop 196,595) Richmond, Virginia Factoring Company (pop 197,456) Yonkers, New York Factoring Company (pop 197,234) Spokane, Washington Factoring Company (pop 196,305) Augusta-Richmond County, Georgia Factoring Company (pop 193,101) Glendale, California Factoring Company (pop 199,430) Tacoma, Washington Factoring Company (pop 197,553) Irving, Texas Factoring Company (pop 196,119) Huntington Beach, California Factoring Company (pop 193,799) Arlington, Virginia Factoring Company (pop 189,927) Modesto, California Factoring Companya (pop 203,555) Durham, North Carolina Factoring Company(pop 195,914) Boise, Idaho Factoring Business Company (pop 189,847) Winston-Salem, North Carolina Factoring Company (pop 188,934)		Imagine flexbility that no one else offers. Unlike the others, you choose what works best for you; you sign no long-term contracts; you pay no fees when your account is inactive. You set up your contract to meet your cash flow needs, not ours. You can choose between using our most advanced technology or using the old-fashioned systems - we maintain both for you. Unlike the others, our objective is not to force you to conform to us, but to get you the cash you need in the quickest and most efficient manner. We offer cash advance rates of up to 97% -- exceeding industry norms by 20%. The typical maximum in the factoring industry is 70-80%. We can offer these great rates because of our unique and flexible combination of bank and private financing. Our same day funding policy gets cash out to you within 12-24 hours. You have the cash when you need it, which will help keep your business moving. Please contact us today and our seasoned invoice factoring professionals will help you get the cash you need today. - Call us at 1-800-986-1859, or - Email us, or - Complete the Online Invoice Factoring Request Form What you need to know about changing accounting receivable factoring companies. Looking for a new factoring company? Unhappy with your current factor? What do I need to know if I want to change factoring companies? Here are the answers to these questions and more: What is a UCC and how does it apply to me wanting to change factoring companies? It is standard industry practice for a factoring company to file a blanket Uniform Commercial Code (UCC) to secure the factor’s first position security interest on the invoices funded. The UCC is a way for factoring companies, banks and commercial lenders to keep straight who is lending on what assets. Because receivables change on daily basis as new invoices collect and old invoices are paid, factors must file what is called a “blanket” UCC filing collateralizing all of your receivables even though you may only be factoring a portion of your sales. It’s simply impossible for factors to file a new UCC for each invoice funded. The UCC is simply a flag for other lenders who chose to run a search indicating a Security Agreement exists between your company and the factoring company. The details of your particular factoring arrangement, such as rates and which accounts are factored, are outlined in the Security Agreement itself which is not public not. A UCC is similar to a first mortgage on your business. Because a discount factor extend credit not to their clients but to their clients' customers, they are more concerned about the customers' ability to pay than the client's financial status. That means a company with creditworthy customers may be able to factor even if it can't qualify for a loan. Benefits of Accounts Receivable Financing Pass off Collections: Outsourcing your accounts receivable management to another company, frees up your resources to focus on other more productive activities such as selling. Free up Working Capital: Many companies have the majority of capital tied up in inventory. Accounts receivable funding allows a company to free up capital tied up in inventory. Quick Financing: Accounts receivable factoring will not require a business plan or tax statements. It's a quick form of cash often used for businesses experiencing a cash crunch. While these are some of the many benefits to invoice factoring your accounts receivable, there are potential drawbacks to using this method to finance your small business. One of the biggest factors of accounts receivable financing is the cost. A 5% discount fee and other charges might not seem high this month, but over the course of a year the costs can greatly exceed the interest on bank credit or a loan. Rates will vary among companies shop for the best deal and contract. Before you embark on using accounts receivable financing for your small business, consider the following questions: We offer tailored processing systems You can choose to use the latest in technology- based processing systems or the old-fashioned paper-based ones or a combination. Unlike the others we don't force you into a box We will tailor our account receivable financing programs to help you make more cash. truck factoring freight factoring trucking factoring freight bill factoring Unlike the others you get to choose what works best for you. We can do this because we have the knowledge,experience, systems, and one-of-a-kind financing that is unique in the factoring industry. Discount Factoring is not a loan; it does not create a liability on the balance sheet or encumber assets. It is the sale of an asset - in this case, the invoice. And while discount factoring is considered one of the most expensive forms of financing, that's not always true. Yes, when you compare the discount rate a discount factor charges against the interest rate banks charge, factoring costs more. But if you can't qualify for a loan, it doesn't matter what the interest rate is. Accounts Receivable Financing Accounts receivable financing is most often used by businesses facing short-term cash flow problems. The major source of accounts receivable financing for small businesses are commercial finance companies, although banks will also consider receivables as security for a business loan. Accounts receivable are typically "aged" by the borrower before a value is assigned to them. The older the account, the less value it has. For example, financiers often lend approximately 75 percent of the face value of accounts less than 30 days old. Some lenders don't pay attention to the age of the accounts until they are outstanding for over 90 days, and then they may refuse to finance them. Other lenders apply a graduated scale to value the accounts so that, for instance, accounts that are from 31-60 days old may have a loan-to-value ratio of only 60 percent, and accounts from 61-90 days old are only 30 percent. Delinquencies in the accounts and the overall creditworthiness of the account debtors may also affect the loan-to-value ratio. Factoring refers to a practice whereby you sell your receivables for a discount before they are due. Historically, factoring has been heavily used in some industries, such as the garment industry, and less in others. Today, however, entrepreneurial factoring companies are willing to buy creditworthy receivables from just about any industry. What is Accounts Receivable Financing? Accounts receivable financing is the selling of outstanding invoices or receivables at a discount to a finance or factoring company that assumes the risk on the receivables and provides quick cash to your business. The amount of value assigned to the account depends on the age of a receivable. A more current invoice will pay more. Any accounts receivable over 90 days typically are not financed. syou may be a candidate for a discount factor if your company regularly generates commercial invoices and you could benefit from reducing the time receivables are outstanding. Discount Factoring may provide the cash you need to fund growth or to take advantage of early-payment discounts suppliers offer. Although discount factoring offers financial flexibility and reduced risk, exporters should be aware of certain limitations:discount Factoring works best for both new and is already established companies and wants the flexibility of selling on open account. A Discount Factor generally will not take on a client for a one-time deal, and may require access to a certain volume of the exporter's yearly sales. A discount Factor generally do not work with receivables having greater than 180-day terms. In discount factoring, the exporter avoids tying up working capital and spending substantial amounts of time in administering receivables. The discount factor assumes financial ability of the customer to pay, and in addition, performs the administrative duties of collections on the receivables. Since discount factors generally have vast networks and contacts overseas, as well as extensive experience in the business, they can conduct these activities easily and at a manageable cost. Accurately assessing credit risk is really the essential part of our factoring business. Few, if any, business clients can perform this function as objectively as we will. For no additional fee, we act as your credit department for new and existing customers. This provides you with a huge advantage over in-house performance of these functions. Consider the scenario where a salesperson has a new account with a potential for large purchases. The salesperson wants the business-so much so that he or she may overlook red flags associated with credit difficulties. The salesperson may even walk the account through your own internal credit checking procedures, in order to side step established controls. While this may get you the sale, it won't get the money, and with no money, there is no sale. This will not happen with us. We make credit decisions with full knowledge of the new customer's credit situation. We will not buy the invoices of a poorly-rated customer and risk nonpayment. But don't look upon our participation as a tightening of credit to the extent that your business will be affected in a way that is beyond your control. If you have a new customer with questionable creditworthiness, the decision to do business with that person is still yours.