Is you AR Aging causing you Cash Flow Problems?
Invoice factoring is a business financing solution that has been gaining popularity as an alternative to conventional business loans. Companies facing a cash-flow squeeze and slow-paying customers often sell their invoices or accounts receivable. This is called Factoring.
Most business owners do not realize that their unpaid invoices (“accounts receivable” or “AR”) are an asset they can sell or finance. Under the FactorAdvantage℠ program we offer, customers who sell or finance their A.R. with one of our many Factor partners are able to access additional working capital that they may not have otherwise been able to. Additionally, customers who want to factor their AR but are unable to due open liens (i.e. existing debt/cash advances), can utilize a FactorAdvantage℠ loan to clear those liens and start factoring their AR with one of our Factor partners
Companies that use factoring like it because they get money quickly rather than waiting the usual 30 or 60 days for payment. After sending an invoice to a factoring firm, a business can have money in its hands within 24 to 48 hours.
Since the factoring firm handles collections, the factor customer doesn’t have to worry about billing and credit checking and about staffing those functions. Another advantage: Companies wanting to expand overseas may find factors often already have extensive experience dealing with overseas suppliers or purchasers and so using factors can make international business efforts a lot easier
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