Invoice Factoring-Factoring of your Accounts Receivable

Posted by on Aug 2, 2012 in Business Tools, Credit & Collection, Non Recourse factoring, Non-Recourse Accounts Receivable Factoring | 0 comments

One of the more perplexing issues in business ownership is that as business sales decrease, cash flow gets better (in the short term) because you put out less money now as the accounts receivables are collected from previous robust sales. However, as times get better and sales increase; labor and materials need to be paid for now, accounts receivables balloon and a new cash crunch begin. In this situation, Invoice Factoring or the Factoring of your Accounts Receivable can help. Accounts...

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Invoice Factoring-Factoring of your AR

Posted by on Jun 15, 2012 in Business Tools, Credit & Collection, Non Recourse factoring, Non-Recourse Accounts Receivable Factoring | 0 comments

One of the more perplexing issues in business ownership is that as business sales decrease, cash flow gets better (in the short term) because you put out less money now as the AR is collected from previous robust sales. However, as times get better and sales increase; labor and materials need to be paid for now, accounts receivables balloon and a new cash crunch begin. In this situation, Invoice Factoring or the Factoring of your Accounts Receivable can help. Accounts receivable financing...

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What is Factoring?

Posted by on Jun 12, 2012 in Business Tools, Invoice Factoring, Non Recourse factoring, Non-Recourse Accounts Receivable Factoring | 0 comments

Invoice Factoring is a financial transaction whereby a business sells its accounts receivable (invoices) to an Invoice Factoring Company at a slight discount. The Factor provides financing to the seller of the accounts in the form of a cash “advance,” often 75-92% of the purchase price of the accounts, with the balance of the purchase price being paid, net of the factor’s discount fee (commission) and any other charges, upon collection. Factoring differs from a bank loan in...

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What is AR Factoring?

Posted by on Jun 1, 2012 in AR Funding, Business Tools, Non-Recourse Accounts Receivable Factoring | 0 comments

AR Factoring or Accounts Receivable Factoring is the selling of your Invoices to a Factoring Company. It is not a loan like a line of credit from a bank but the sale of an asset (Your Invoices) to a third party Invoice Factoring Company. Many terms and abbreviations are used to describe the same transaction: AR Factoring, AR Funding, Accounts Receivable Financing, Invoice Factoring, etc. However, they all mean the same thing. Versus waiting 30-60 days to get paid by your creditworthy client, an...

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