Authored by Phil Cohen
When your business has slow-paying customers, you can start to feel the squeeze. In the 60 days it takes a client to submit payment, you have to pay employees, make purchases and cover your own expenses. It can put a financial strain on your business. Relieve the burden of waiting for payments with accounts receivable factoring.
How Accounts Receivable Factoring Can Help
Accounts receivable factoring is when a business sells outstanding invoices to a factoring company. In exchange for taking on the invoices, the factoring company provides the business owner with a cash advance up to 95% of the invoice total. The rest of the funds are deposited into a reserve account. When the factor has collected the outstanding payments from clients, the rest of the funds are released to the business owner, minus a small factor fee that is previously agreed. The application process is simple and the needed documents are straightforward to submit. After the factor has verified the invoices, most people receive their cash within 24 hours.
How to Find the Right Factor for Your Business
Wondering how you will find a factor for your business? Factor Finders is here to help. As a factor broker, we draw from our extensive network of factors to match you with the perfect factoring company. No matter if you are a startup or if your credit is less than ideal, factoring can be a solution to traditional lending. Even if you have been denied a bank loan in the past, you can still receive cash now from accounts receivable factoring. This is an ideal solution for businesses that need a cash advance when their clients are slow to submit payments.
We Want to Hear from You
At Factor Finders, our goal is to connect you with the right factoring company for your business so you can get the cash you need now. Contact us today to start the process. One of our expert team members will respond within minutes.