The Benefits of Working with an Accounts Receivable Factor

If you are a business owner in need of boosting cash flow, you should consider the benefits of accounts receivable factoring. You likely are aware of the effort involved in acquiring resources to meet cash flow shortages. There may come a time when traditional business financing, including lines of credit and loans from a bank, are limited or not within reach. At times like that you can turn to accounts receiving factoring.

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Factor Financing

Factoring is one of the oldest forms of commercial finance. It is the process of selling outstanding invoices at a discount to a specialized factor company that will assume the risk on the receivables in return for a quick influx of cash into your business. Highlights of an accounts receivable factor programs include:

  • Access to cash quickly for a variety of purposes
  • Free up working capital to grow your business inventory
  • Save the time and effort not spent collecting money due from customers
  • Retain sole control of your company and still get the capital you need

 

Basic Funding Concept

Factor funding may be a new concept to you, but it has been a viable source of financing for years. Once you understand the concept behind factoring, you will see how it is a healthy option during tough economic times for your business needs, particularly if you don’t want to turn to conventional lenders for assistance. This type of financing is a simplified method to finance operations, particularly in an environment where funding is difficult to secure.

When your business needs to improve cash flow, consider the benefits of account receivable factoring. Complete a rate form now to discuss details with one of our professional analysts about our simplified process that can get your business the money it needs fast.

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