Factoring invoices is beneficial to businesses looking to grow and free up cash flow tied into their accounts receivables.
What is factoring? The purchase of either business-to-business or business-to-government accounts receivables/invoices.
How does it work? We will advance you a percentage of the invoice and upon payment will remit the remaining funds to your company less a fee.
Is Factoring a Loan? No. Factoring is not a loan, it is a discounted purchase that can be equated to a cash discount.
Why would a company use Factoring? Companies utilize factoring in order to increase production, increase sales, create new markets, fulfill large orders that require a large financial commitment, take advantage of cash and volume discounts, obtain an unrestricted use of funds.
Benefits associated with Factoring:
Stimulate business growth
Relies on the strength of customers
Accessibility- even to business that are not bankable