What is Factoring?
Factoring has been around for literally 1000+ years. It is one of the oldest forms of
commercial financing. The factoring Industry does approximately 50 billion dollars in
receivable financing (factoring) per year.
Factoring protects companies against customer credit losses while converting their
accounts receivable to cash. It is a complete financial offering that combines credit
protection, accounts receivable bookkeeping, collection services, and financing.
When your company uses one of our factoring companies, the factor purchases your accounts
receivable with or without recourse (depends on factor) and assumes the responsibility for
your customers' financial ability to pay. The factor extends credit to your customers,
collects from them, and performs the related bookkeeping functions. Companies of all sizes,
from startups to mature companies, enjoy a number of benefits from Factoring, including
improved cash flow, minimized bad debts, reduced operating expenses, expanded working
capital financing and improved management information. To learn more about selling your invoices and how it can benefit
your company, we have provided the following additional information:
Remember that factoring is not a loan. There is no debt repayment, no compromise to your
balance sheet, no long-term agreements or delays associated with other methods of raising
capital. Factoring allows you to use your cash that is tied up in receivables for your
company’s needs today.
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