Consumer Receivables Factoring Services
With consumer receivables factoring, your company can collect money on invoices immediately. Factoring companies purchase your outstanding accounts receivable and deposit a large portion of the proceeds into your account within days or hours. Using accounts receivable financing helps you avoid the hassle of waiting for months or years to receive cash for your services.
Factoring Consumer Receivables Boosts Your Business From the Inside Out
Having cash on hand when you need it allows your company to pay for current expenses.You will receive additional perks with consumer receivables factoring, such as back office support on your billing and collections. Selling seasoned portfolios and written-off accounts for advanced funds allows your company to take advantage of early pay discounts and be financially prepared to take on more clients and additional contracts.
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Accounts Receivable Factoring FAQs
The frequently asked questions listed below will help you become more familiar with consumer receivables factoring.
What is a consumer receivables factoring reserve?
A reserve is the percentage of the cost of your consumer receivables that the factoring company does not pay you cash for initially. A reserve is held until your customers pay their invoices so that the factoring company has protection against loss. Once the factoring company has received payment for the consumer receivables invoices, they will deposit the reserve in your account, minus a small factoring fee.
What are some other guidelines for factoring consumer receivables?
Factor Finders is most interested in consumer receivables factoring contracts ranging from $500 to $5,000, with 6- to 36-month terms.
If you have any questions about your consumer receivables eligibility, don’t hesitate to call one of our account managers today.
What is the difference between recourse and non-recourse factoring?
With recourse factoring, your customers are expected to pay the factoring company within a certain time frame. If they are unable to meet this time frame, the consumer receivables factoring company will withhold more of the reserve to compensate.
In non-recourse factoring agreements, your business will not be held accountable if your customer fails to pay the factoring company. This presents a lower-risk situation for you, but a factoring company that offers non-recourse typically charges a higher invoice factoring fee and may hold a higher reserve.
Which Industries Can Benefit from Factoring Consumer Receivables?
Resorts or timeshares
Travel or health clubs
Unsecured Business Loans Offer Additional Financing Options
Factoring consumer receivables is ideal for businesses billing consumers under contract terms and seeking an ongoing source of funding. If invoice factoring isn’t a fit for your business, or if you’re looking for a one-time cash infusion, Factor Finders can get you funded. Unsecured business loans are a quick and risk-free financing solution for all businesses. If your business has been in operation for at least one year and generates a minimum of $100,000 in annual revenue, you’ll easily qualify for an unsecured business loan.
Unsecured business loans require no personal guarantees. Along with no collateral required, no liens or UCC’s are filed. Unsecured loans for small business owners provide quick working capital without the risk. Funding can be complete in as little as 24 hours. Why wait? If your business could benefit from additional funding, contact us today! We’ll get you set up with the best unsecured business lending options for your needs.
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