What is Accounts Receivable Factoring?
Accounts Receivable factoring helps small to midsize businesses get paid sooner by providing immediate cash advances for outstanding invoices. In other words, the business sells its invoices to a third party (the factor) at a discount to ultimately get paid faster—usually within 24 hours. Factoring fills the money gap and creates a predictable and dependable source of cash for businesses.
Factoring accounts receivables allows the business owner (you) to receive up to 97% of the value immediately. Then, the factoring company gets paid by your customer.
There are two types of factoring to consider, recourse and non-recourse. Recourse factoring requires the client to ultimately take responsibility for the payment of the invoice. Non-recourse factoring allows companies to sell their invoices to the factor who assumes the credit risks for the collection of the invoices.
Accounts Receivable Cash assists in creating custom invoice factoring plans tailored to your industry. We will become an expert on your business and advise the best factoring schedule pertaining to your business plan. We offer flexible AR factoring solutions for both start-ups and established companies. No matter your industry, your business is capable of turning their unpaid invoices into immediate cash.