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What is a Factoring Company?

What is an Invoice Factoring Company?

You may have heard of the concept of factoring, but might wonder, “What is a factoring company?” “What do they actually do?” “Are there different kinds?”

A factoring company is a business that purchases another company’s invoices. Basically, a factoring company offers invoice factoring (or accounts receivable factoring) services to companies of a variety of sizes.

Working with factoring companies is a popular financing solution for businesses that have cash flow issues due to slow-paying customers, seasonal highs and lows or rapid growth.

One important aspect of a factoring company to understand is that businesses don’t borrow any money from a factor. Instead, they are simply advanced their own money ahead of time since it’s their invoice.

Why Would a Business Work With a Factoring Company?

Working with a factor company provides businesses with cash quickly, usually within 24 hours. Because it is so fast and simple, B2B (business-to-business) companies find it to be a great funding solution for unsteady cash flow.

Additional reasons would be that factoring companies approve businesses more easily than a traditional bank loan, there aren’t any long-term contracts, no debt is created and the fees are low.

Find the Right Factoring Company

Start the process by completing the form and getting set up with the best factoring company for your business.

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What Industries Do Factoring Companies Work With?

Companies that provide invoice factoring services typically specialize in a few industries, but we work with the following:

Construction

Government

Healthcare

Manufacturing

Oil and Gas

Service Providers

Technology

Telecommunications

Transportation 

Trucking

And Others

Ready to Find Your Perfect Factoring Company?

As factoring experts, we listen to what you need and get you to the best factor. Get started by contacting us today!

Factor Finders
Talk to Us: 855-322-8671

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