accounts receivable factoring accounts receivable factoring

Accounts Receivable Factoring

Through GetFactored.com you can get accounts receivable factoring online easily. It is the only online factoring marketplace where factoring companies compete for your business and you choose the offer that's right for you. Whether you have used factoring before or this is your first time, GetFactored.com can make the process clear, simple, and understandable.

Accounts receivable factoring is selling the interest in your receivables or invoices to a factor at a small discount. Sometimes accounts receivable factoring is called "receivables financing". In fact, it is an old financial service used by multi-billion dollar corporations that is now available to smaller sized businesses to which banks are reluctant to lend funds. Accounts receivable factoring is filling a tremendous void that banks have created.

Basically, a company sells its accounts receivable (invoices), representing money due from its customers to a factoring company, at a discount from face value so that it does not have to wait the normal 30-45 days for its accounts receivable to be paid. In short, factoring helps a company speed up its cash flow, thereby enabling it to more readily pay its current obligations and grow.

Many new and growing companies have trouble obtaining traditional bank financing due to their length of time in business, profitability or financial strength. Accounts receivable factoring allows these companies to convert their accounts receivable into instant cash. Once you have delivered your product or service and generated an approved invoice, you can get your money in as little as 24 hrs. Accounts receivable factoring can help a company stay current with its vendors and other financial obligations such as payroll and taxes.

Other types of financing generally require two years in business and showing a profit. Accounts receivable factoring does not have this limitation. Young, growing companies or those with tax liens and even bankruptcy can still qualify for accounts receivable purchasing lines.

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