Factoring is basically a financing arrangement where a company sells their accounts receivable(outstanding invoices) to a discounted third party. The third party, known as a factor, provides the business with an advance payment for the receivables, minus a fee. The business then uses the cash to finance operations.
As any small business owner knows, slow-paying customers can put a strain on your cash flow. Trying to cover expenses and payroll while waiting for customers to pay their invoices is frustrating enough, but outstanding receivables not only weigh you down emotionally, but they also prevent your business from progressing.
AR Factoring lets you receive payment for outstanding receivables within 24 hours, which is a quick and easy way to improve your cash flow.
If you’re a business owner, chances are you could benefit from factoring. Factoring.io specializes in flexible AR solutions for businesses of all shapes and sizes. By using our service, companies of all shapes and sizes can receive funding quickly by turning their receivables into cash.
Accounts receivable factoring not only offers you a number of benefits to help streamline operations, but it also makes your money go further. Rather than being merely a financing option, factoring is an all-inclusive business solution. This service provides a dedicated account manager to help your business grow and succeed. Your assigned manager will be there for you every step of the way, ensuring that you have all the resources and knowledge you need to achieve success.
The attractive benefits of receivables factoring includes;
A typical bank loan entails borrowing a set sum of money that you cannot spend above. However, with accounts receivable factoring companies, your abilities to earn working capital advances as your sales do. After all, it’s revenue that you’ve already collected.
Accounts receivable factoring is advantageous for another reason – companies with poor or no credit can still be approved. If you are a new business owner or have had financial difficulties in the past, don’t worry! You don’t need collateral or to increase your debt balance to qualify for a accounts receivable factoring program.
A lot of businesses dedicate a significant amount of time and money to managing back-office tasks, from collections to investigating new and existing customers. Depending on your sector, this expenditure could reduce the funds you have available to invest in your main functions and slow down growth. When you factor your accounts receivables, you suddenly have an extra set of hands to help with administrative tasks. This means less overhead for you and more time spent on making your business grow. Back-office support from a factoring company can include:
Fees for factoring receivables will differ based on your contract, but they generally fall between 1%-5%. The fees a factoring company charges are calculated by weighting many factors such as sales volume and client base. If you’re looking for affordable programs with low fees, don’t hesitate to reach out! We would be more than happy to get started today.
You’re probably eligible for AR financing even if you’re a startup, as long as you’re a B2B company. poor credit isn’t an issue either- by selling your accounts receivable to us, we can get you the funding you need.
We work with many different types of companies in various industries, like:
Are you anxious about customers making payments? Does your business expand so rapidly that its liquidity lags behind?
Could you use some extra working capital within the next week?