Authored by Phil Cohen
There are numerous benefits of accounts receivable factoring for small businesses. From having immediate cash access to debt-free financing, accounts receivable factoring is a solution for small businesses that need working capital now. Stop waiting weeks for payment from clients and start accounts receivable funding.
Benefits of Accounts Receivable Factoring
Accounts receivable factoring is when a business sells unpaid accounts receivable invoices to a factoring company for a cash advance amounting up to 90% of the invoice. Once the clients have paid, the factor releases the remaining balance, minus a small factoring fee. Businesses benefit from accounts receivable factoring in several ways. Since you are using money that is already yours, it is debt-free financing. There is unlimited funding potential since factors do not offer a fixed credit line. The more your sales increase, the more access you have to immediate working capital. Unlike a traditional bank loan, factoring does not consider your credit history, which means even businesses with less-than-ideal credit can qualify for accounts receivable factoring. The process is straightforward and most people receive cash within 24 hours after approval. You can pay your employees, purchase equipment and grow your company with funds from factoring that you would normally have to wait weeks to see from slow-paying clients.
Role of Factoring Broker
Working with a factor broker can make the process of finding a factoring company simple. At Factor Finders, we have a network of over 75 factoring companies from various industries. After learning more about your company and needs, we can match you with a factor for a perfect fit. You will then complete an application and provide the required documents. Approval from the factoring company typically happens within 3-5 days. Once you are approved, your cash will be paid out within 24 hours. You can have money in hand when you need it instead of waiting weeks for a traditional form of lending.
Contact Factor Finders Today
We are waiting to help you start factoring. Contact Factor Finders today. We will respond within minutes to connect you with a factoring company.