Accounts Receivable Factoring

Cover your cash flow shortages quickly and cost-effectively.

Is your business experiencing slow cash flow? Are you encountering difficulties securing a bank loan? Are you short of cash to pay for essential business operations?

Accounts receivable factoring from Business Factors & Finance is a smart, fast and cost-effective solution.

Get the cash your business needs. As a leading accounts receivables factoring company, Business Factors & Finance can factor your accounts receivables into immediate cash. Use this money to finance payroll, expansion, and seizing opportunities to grow your business.

Bottom line: We purchase your accounts receivables in exchange for immediate cash. With accounts receivables factoring (also known as AR factoring), you have the power to grow your business without incurring debt or diluting your equity.


WHY YOUR BUSINESS NEEDS CASH NOW

For both startup companies and established businesses, there are times when cash flow simply can’t keep pace with expenses. In these, and similar situations, a business without sufficient cash may face a threat to its very existence. For many business owners, cash flow is a seemingly endless issue.

That’s because cash is always needed for:

  • Payroll
  • Operational expenses
  • Overhead and supplies
  • Leasing new facilities
  • Expanding into new markets
  • Underwriting unexpected new-growth opportunities

For these and other expenses, your business relies upon payment for current invoices. Not surprisingly, perhaps, you may have already experienced challenges with the slow payment of these invoices or other collections-related issues.

Cash demands for new business. This can be especially daunting for new businesses, which generally lack sufficient working capital. Hiring new staff, conducting research and development of potentially game-changing ideas, and/or simply purchasing raw materials for production—all these critical activities require capital.

If your fledgling business lacks enough customers or can’t collect on outstanding invoices, where is that money going to come from?

IRS tax issues. Some businesses experience cash-flow problems when an IRS tax issue arises. If a tax lien is imposed, how can these companies survive without an assured flow of capital?

Even in good times, cash may not always be accessible. Businesses experiencing rapid growth may also face a cash-flow challenge. Taking on an array of new customers is a great thing, but only if those customers pay for your products or services in a timely manner. Otherwise, your expenses far outstrip your revenue stream, in which case, you once again face the issue of coming up with capital to fund those promising growth trends.


WHY A BANK LOAN MAY NOT BE THE ANSWER

In times of a crunch in cash flow, many businesses (large, small, new, long-established) think first of turning to a bank loan to solve their problem. Unfortunately, in too many instances, such ventures go unrewarded.

Banks, of course, are notoriously selective in terms of who they choose to finance. For a variety of reasons, they view some businesses as “non-bankable.” If they don’t like your credit score, the history of your tax returns, a lack of significant business collateral—you’re essentially out of luck.

Even those businesses lucky enough to get approval for a loan face daunting challenges revolving around extensive business loan application paperwork and a lengthy waiting period to actually receive the cash they so badly need. A traditional bank loan can take weeks to be approved—an unworkable solution for companies crunched by time that need cash now.


HOW ACCOUNTS RECEIVABLES FACTORING IS THE BEST SOLUTION


Receivables financing is markedly different from traditional bank loans in that:

  • Your personal or business credit history is not a determining factor.
  • It’s much easier to qualify for factoring capital.
  • Receipt of cash is almost immediate (days, rather than weeks or months).
  • Your invoices serve as collateral, not the amount of inventory, working quality of equipment, etc.

When time and money are urgent elements in the livelihood of your business, AR finance can offer the kind of time-sensitive solution traditional bank loans cannot.

Here’s how accounts receivables factoring works:

  • Essentially, an AR finance option is typically a line of credit based on your total accounts receivable. The decision to provide cash in exchange for your invoices depends primarily on the invoicing process and the credit strength of your buyer.
  • You pay no upfront fees when receiving simple credit qualifications and friendly, professional and confidential counseling.
  • You receive an advance of up to 96% of the face amount of your invoices or accounts receivables, while Business Factors & Finance collects on the invoice and takes on 100% of the credit risk.

By employing accounts receivables factoring, you gain the cash you need for payroll, operational and other business expenses almost immediately, while no longer having to endure the stress of collecting from slow- or late-paying customers. We advance you up to 96% of the total invoice amount, holding the remaining amount in reserve.

When your customers have paid their invoices in full, you get that reserve amount back, minus the agreed-upon lender’s fees—typically, a 3% processing fee on the invoice amount and a 1% “factor fee” charge for every week until the invoice gets paid.

For businesses with a sizeable amount of regular (or recurring customers), this type of invoice factoring is often regarded as a “set-it-and-forget-it” arrangement. They have the assurance that, under this arrangement, capital is coming in every month. This eliminates the time and effort involved in collections, freeing up the business owner and his or her executive team to focus on strategic opportunities and investments—as well as securing ever more customers to add to their customer base.


WHAT BUSINESS FACTORS & FINANCE CAN DO FOR YOU TODAY


AR factoring from Business Factors & Finance offers many advantages over bank financing:

  • Turn to us to provide you money equaling 90-99% of the invoice.
  • Eliminate tedious collections as Business Factors assumes all risk for getting the invoice paid.
  • Get factoring of accounts receivable that is flexible and fits your business situation.
  • Avoid the need to complete long, time-consuming applications.
  • Be qualified quickly without reliance on personal credit scores or business history.
  • Receive factoring accounts receivables services that are completely confidential.
  • Pay no fees up front.

At Business Factors & Finance, we make account receivables financing easy to obtain with minimal paperwork. Unlike other accounts receivable finance companies, we always have someone available for you to talk to or answer any questions you may have about your AR funding goals. Decisions are based primarily on the invoicing process and the credit strength of your buyer.

  • Don’t wait 30, 60, 90 days. AR financing with Business Factors & Finance gets you your money in as little as 24 hours.
  • Pay no upfront fees when receiving simple credit qualifications and friendly, professional, confidential consulting.
  • Get an advance of up to 96% of the face amount of your invoices or accounts receivable while BusinessFactors.com collects on the invoice and takes on 100% of the credit risk.
  • Watch your account receivables financing proceed fast to prevent your cash flow problems.
  • Be considered for this financing of account receivables regardless of your industry.

 

Contact BusinessFactors.com for details on factoring accounts receivables.

Don’t wait to find out how valuable AR factoring can be a smart financial tactic in the operation of your business. Learn how BusinessFactors.com is the source you can trust for friendly, confidential service and support for accounts receivable funding. Also, learn more at our invoice factoring learning center for free today.

 

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Representatives are available 24/7 to answer any questions you may have on accounts receivables factoring. Call us today at 800-672-3844.