Commercial factoring – Maximize Your Cash Flow

Commercial factoring is a process where a factor – the company that purchases your invoices and receivables – provides your business with the advance payment up front. As a third-party, the factor eliminates the sale-to-collection 30, 60 or even 90 day delay.

The 3 Main Advantages

• Immediate Cash/No Waiting.You can receive quick payment following shipment, delivery and invoicing (less than 24 hours in some cases) to generate cash much sooner than if you collect the money on your own.
• Analysis of customers’ creditworthiness.Prior to purchasing your invoice, a factor conducts a credit analysis on the client you are invoicing to determine the risk. You are entitled to the resulting analysis and can assist you in your future business dealings with that customer/client.
• You are not borrowing money.Again, the cash advanced is based on your client’s credit status, not yours. You may qualify for factoring even if you are a young company without an established track record, have a tax lien, or even declared Chapter 11 bankruptcy.