Accounts Receivable Factoring |
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Accounts Receivable Factoring
At times a business may need to free up its working capital on short notice, whether to get through a slow period in sales or to finance new venture that has suddenly come up. Many companies in such a situation use accounts receivable factoring to quickly receive the money they need.
Accounts receivables are invoices that catalog how much money is owned to the business. In accounts receivable factoring, a business sells its invoices to a factoring company at a discount. In exchange, the company selling the invoices gets an immediate loan or cash advance minus the factoring fee on all outstanding bills of sale. The factoring company on the other hand, makes its profit by cashing in on the full value of the invoice.
Though terms may vary depending on the unique circumstances of the business and the factoring company that it chooses, factoring accounts receivable is a quick alternative to getting a standard business loan. Generally, business loans require collateral, good credit and detailed financial reporting as well as a solid business proposal. They also have a long approval process which can last anywhere from 30 to 90 days.
Factoring Credit Card Invoices
Credit card factoring is a form of accounts receivable factoring whereby a business can receive a cash advance based on future credit card sales. At Advance Factor, we excel in providing business cash advances up to $250,000, through credit card factoring.
How will Credit Card Factoring Work for You?
Whenever a customer completes a sale via Visa, Mastercard, or American Express, we will purchase a portion of that sale at a discount. The factoring fee will then be used to pay back the cash advance over time.
Since repayment is dependent on sales volume, you will enjoy a more fluid cash flow. Moreover, by factoring credit card invoices, you avoid the pressure of having to always keep up with scheduled payments, even when sales are down..
To be considered for a business cash advance, your company must process at least $2,500 in credit card sales via Visa, Mastercard, or American Express.
You can fill out our quick online application or for more information call... |
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