Accounts Receivable Factoring Company
Does your company need financing? Canít wait 30 to 60 days to get paid by your commercial or government customers? Slow paying customers can create cash flow problems, especially for companies that are growing quickly or have exhausted their capital. As a leading factoring company, we can help you solve this problem and provide you with working capital by advancing funds against your slow paying accounts receivable.
Questions? Call (866) 730 1922. Services in the USA and Canada.
Factoring Rates as low as 1.5%. Advances as high as 90%.
Click here for a quote or consultation
(subject to monthly volume and industry).
Select your industry:
Financing for small and medium sized companies such as janitorial companies, commercial suppliers, manufacturers, oilfield services and technology firms
Freight bill factoring for freight brokers, trucking and commercial transportation companies.
Funding for companies that sell products and services to federal and state government agencies
Financing for staffing and temporary employment agencies in all industries
Accounts receivable factoring for companies that provide security services to commercial, industrial and government clients.
Financing for construction subcontractors that work for GCís or commercial clients
Financing for health service providers that invoice 3rd party insurance companies, medicare or medicaid
Trade financing solutions
Purchase order funding for small and medium sized distributors, importers and resellers
Accounts receivable factoring is a form of business financing that is used by companies that have cash flow shortages because they can't afford to wait up to 60 days to get paid by customers. Factoring companies solve this problem by providing you with financing using your most important asset - the receivables from your credit worthy customers. This provides you with immediate liquidity which can be used to cover critical company expenses. Also, it enables you to offer terms to your customers while decreasing the problems from slow payments.
How does it work?
The process is relatively simple and can be used by most companies. Most transactions are structured using two installments. The first installment is called the advance and is provided when the invoice is submitted for funding. The second installment is called the rebate. It covers the portion that was not initially advanced, less the financing fee. The rebate is provided when your customer pays.
Here is how the accounts receivable financing transaction flows:
- Your company delivers the goods/services to the customer
- An invoice is sent to the client
- A copy of the invoice is sent to the factoring company for funding
- The advance is wired to your company. It covers 70% to 90% of the gross value of the invoice
- Once the finance company receives payment from your customer,the rebate is sent to your account (less the funding fee)
Financing your receivables has a number of benefits. The most important one is that it will help your cash flow and strengthen your financial position. Additional benefits include:
- Predictable revenues: You get predictable revenues that allow for better business management.
- Line flexibility: The funding line is directly tied to your receivables and will grow with your revenues
- Improved credit profiles: Factoring companies can help you review the credit worthiness of new and existing customers, helping you ensure you only give terms to those who deserve them
- Quick setup: The line can usually be setup and deployed in days
Easy qualification requirements
As opposed to most most lines of credit, accounts receivable factoring is easy to qualify for and can be set up in about a week. The biggest requirement is that your company should have reputable commercial (or government) customers with good credit. Additionally, your company should meet this criteria:
- Accounts receivable must be free of liens and judgments
- The company should not have major taxation or legal problems
- Management must be experienced
- The company must be profitable - or should have a plan to be profitable
Get an online quote in seconds. Questions? Call (866) 730 1922. Services in the USA and Canada.
Need more information?
If you want to learn more about factoring receivables, please visit our factoring resource center. You can also read these articles: