What is Factoring?

Accounts Receivable funding (Factoring) is designed to help businesses improve cash by not waiting 30, 60, 90 days for a customer to pay.

Factoring is not a loan and differs from borrowing in that your Accounts Receivable invoices are sold at a discount rather than merely offered as collateral. It’s the same concept as offering a discount for early payment (2-10, n/30), only now you can get the money in 24-48 hours, and it doesn’t depend on how your client wants to pay.

New businesses and fast growing companies have huge demand for cash. Often, their A/R is growing faster than their cash flow. With Factoring those increased receivables can help fund your growing business.