We are the BEST invoice discounting
company in the industry.

There are some invoice discounting companies out there which like to claim to be the best. However, we don’t claim anything. We prove it to you! But, don’t get sick of hearing it -- because we’re confident, and we’ll say that we’re the best whenever we get the chance.

Account Receivable Financing

What is Invoice discounting?

Invoice discounting is quite simple, actually. It is a time-honored and proven method for businesses to get cash when they need it. It has been practiced in America since colonial times and is one of great financial services that have kept this country’s businesses strong for so many years.

Here’s how invoice discounting works:
You’re a business that provides goods and services to customers who are creditworthy. Once you provide that customer with an invoice you have to wait to be paid. The problem with this is that customers sometimes take weeks or even months to pay invoices. This is especially true if you’re a B2B (Business to Business) company.

With a factoring service like us you don’t need to wait for this cash. We will purchase your outstanding invoices at an excellent rate. You get the cash immediately and we do the work on collecting from your customers. It’s a win-win for you because you get the cash that your business needs right now and you no longer have to waste time in collecting on invoices or wondering when your cash is going to come in.

reasons to use invoice discounting service

  • Fast growing businesses need cash for purchases and to cover operating costs.
  • No debt created! You get cash without taking on a small business loan.
  • Expansion of business into different markets.
  • Start-ups with no financial records or credit can get the cash they need from factoring.
  • Improved credit rating of your business by putting cash in your bank accounts.
  • Timely tax payments or payment of State and Federal tax liens.
  • The need for cash in seasonal down times.
  • Short-term cash to act as a bridge loan or to meet payroll needs.




WE PROVIDE HUNDREDS OF MILLIONS IN CASH EACH YEAR

We relieve your headaches and stress of collecting on accounts receivables.

Most Convenient

You have 24/7 account access 365 days a year.

Account Receivable Financing

Always Reachable

When you call, you get to speak to a real live person.

Account Receivable Financing

Invoice discounting is great for any business that offers services or delivered goods.



Fast money for businesses that need it

Don’t wait long periods for a loan. Many of our factoring deals can take place in as little as 24 to 48 hours. If you need capital right now or are looking to expand then factoring is the way to go. We work on your time instead of you working on a bank’s schedule.


MAXIMIZE YOUR TIME BY
MINIMIZING THE COLLECTION PROCESS

If you need cash and you’re sitting on a lot of unpaid invoices then factoring with us is the way to go. We’ll give you the cash that your business needs and collect from your customers.


NO DEBT - JUST CASH

Debt is risky while at the same time being beneficial to growing a business. Start-ups can relieve themselves of the risk of debt and still create capital with factoring.


CAN’T GET A LOAN

If you’re a start-up or your business has a poor history or credit then you can still get the cash that you need. Today’s banking atmosphere makes it a challenge for even the most-qualified businesses to get a loan. Factoring takes care of all of that.


HELP SMALLER BUSINESSES WITHOUT THE STAFF

Without a collections department or a small staff, collections often come down to you doing all of the leg work. Our Factoring Service will alleviate that burden and provide the service that you’re not equipped to handle.


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Factoring is when a third party commercial finance company purchases the Invoices or Accounts Receivable from a business.

 

 

Account Receivable Financing Articles

Factoring Companies - Benefits

 

Factoring companies offer a wide variety of benefits to businesses. Factoring companies conduct financial business by allowing a business to sell its invoices to a factor (also known as a third party business or individual.) The price that the business charges is discounted in order to sell the invoices that are currently held, and make the cash that is immediately needed for any type of expenditures involving the business. A business that has immediate cash needs, but has no cash to pay for the expenditures that has occurred often ends up going under and eventually shutting down completely. This takes a lot of jobs away from people, and can leave you working for someone else, no longer running for your business. No one wants to take this large step down from the current place that they are in. A business owner has worked incredibly hard to get to where he or she currently is, and does not deserve to have their business become obsolete. This is where the factoring companies can be a huge help to businesses.

 

Invoice FactoringKeep in mind that factoring companies do not use the same process as invoice discounting. Instead, invoice factoring (also called the “Assignment of Accounts Receivable” by the FASB and GAAP) is the sale of invoices, instead of invoice discounting which involves collateral in order to ensure that the individual who took out the invoice discounting loan will pay it back. Factoring is not a loan; instead, factoring is the sale of invoices in order to get immediate cash. There is no loan in the process of factoring, and you will never have to pay the money back.

 

Since the invoices that are sold are also called receivables, the entire process of factoring is usually called the sale of receivables. Receivable factoring is much better than trying to take a loan out from the bank. Banks charge interest on any type of loan, and although there is usually collateral, it can put you in even more debt than you currently are. In addition, factoring companies are never going to give you a loan. When a factoring company funds your discounted receivable, he or she will choose to buy the receivable, giving you cash immediately. This cash can pull your entire business out of the hole that it is currently in. Instead of taking a loan out and getting yourself further into debt, factoring allows you to simply sell your own invoices and get back most of the money that you originally put into them. Although this may seem like a bad process since you are selling valuable invoices, it is important to do, as the invoices are completely useless if your entire business goes under. Instead of trying to take a loan out to keep all of your receivables (invoices) factoring companies benefit you directly by giving you the cash you need.

 

Benefits of Factoring Companies / Invoice Factoring / Receivable FactoringWhen you are in a bind and really need money in order to get through the next few months, it can be very troublesome. Although the first thought in most peoples’ minds would be to visit the nearest bank as soon as possible and take out some kind of loan, this is very dangerous. Although the loan may hold your business over for the next few months, it is simply delaying the same money crunch you already had. Unless your business is making an incredible amount of money, the bank loan that you took out has increased in the price that you must pay bank. Interest on a bank loan is how the banks make money and survive. Many loans have a very high interest rate, and if you are unable to pay the loan back in a short amount of time, you are going to be in more of a money crunch than you originally were in. In order to pay back the loan, you would have to make a large amount of money in a very short time, which is unlikely if you needed to take out the loan in the first place.

 

Rather than bothering with bank loans that will inevitably put you back in the money hole that you were in when you took it out, factoring companies are available to help you. A factoring company is a place where businesses can place their invoices for sale at a discounted price, which will allow them to receive immediate cash. As aforementioned, this money does not need to be paid back, as it is not a loan. Keep in mind, you are not selling your business. You are selling invoices in order to keep your business growing. You will be able to get more invoices in the future when your business is back up and running, but if you do not sell these invoices, you will never be back up and running.

 

When you are in a money crunch, don’t put yourself back in the money hole that you are in by taking out a bank loan. Utilize factoring companies in order to get immediate cash that will help you get back up and running without putting a loan on your business.

 

 

 

 

Account Receivable Financing Articles

How Factoring Companies Help Trucking Companies

 

Commercial transportation play a vital role in the economic growth of any place; and the back bone of this large scale transportation is the trucking companies. Every trucking firm has contributed to the economic development of the place irrespective of how big or small they are. It is these trucking services that take the goods around by road or deliver goods on the shores or to the airport to be transported overseas. Unfortunately these companies face a lot of operational issues with relation to hikes in fuel prices and a credit period which affects their cash flow.

 

Are you heading one of these trucking companies and facing issues with operating costs? You are not alone and there is a solution. Factoring companies provide you the much needed relief by facilitating cash flow by using your accounts receivables. The operations of these companies are different from bank loans as it does not affect the debt to equity ratio. Here is a small instance to explain their role in making your trucking company a success. Consider a small firm with around 10 trucks. The firm is doing very well and is able to manage its operations efficiently. But it's not able to accommodate new clients due to lack of trucks and delay in payments from his current customers by 45-60 days. Factoring companies step in the gap, they buy your invoices and give you the cash you need to buy the new trucks and meet other expenses. These firms wait for the customer's to make their payments and you get to move on. This article throws light on how these factoring companies help trucking companies and why all trucking companies should use them.

 

Answers Concerns on Operating Costs

 

Factoring companies work towards providing you timely funds by supplying you the required amount as they wait for your customer to make payments. This allows you to make payments to your employees on time, pay off bills and fulfill other business commitments with ease. You also have the cash to repair your trucks in time to prolong the life of the vehicle. Factoring firms facilitate the smooth running of your business by eliminating the waiting period; especially considering the fact that some customers take 60-90 days to make payments. The best part is you use this service without facing any concerns about liquidity and this is why all trucking companies should use them.

 

Prevents and Eliminates Further Debt

 

Factoring firms bring in stability and avoid situations where you may require loans. Avoiding loans helps in keeping the debt to equity ratio low. This in turn improves your image and helps you take steps towards paying off your outstanding loans. Paying off bills on time therefor keeping your suppliers happy. The fees taken by factoring company is decided on the financial situation of the trucking firm and is usually 1-3 percent of the invoice value.

 

Offer Management Services

 

Managing your office is another option given by these companies. The service includes recording your accounts receivable, checking outstanding payments from customers and following up for timely payments. This gives you a hassle free environment to work and contribute to the growth of your business. In case you do not wish to hire them for managing your payment section, they provide online services for providing funds. You can send details in spreadsheets for requesting payment. They are quick to respond and precise in communication.

 

Checking Credit Worthiness of the Clients

 

Factoring companies maintain data on the credit history of prospective customers. They share this information with you once you begin working with them. This brings down the number of issues with non-payment and delayed payments. This is especially important for small and medium sized firms who are still growing and learning the intricacies of this business. It avoids getting in to situations which can jeopardize the sustainability of your company.

 

Cuts Down Over Head Cost

 

Hiring trucking factoring companies for back office operations is beneficial in many ways. First of all you do not need another set of professionals to run your office. Apart from being an overhead cost, you can reduce your time managing them. Giving this section away to factoring firms saves you a lot of precious time and money. And above all they provide high quality transparent service. With this you can stop chasing your customers for payments.

 

Builds Your Image

 

Time is precious and with trucking factoring companies you get to use this resource efficiently. They take care of customer's payment schedule and replenishing your reserves as the situation demands. This gives you the financial backup to take your business to the next level. You get to make sound decisions about buying more trucks and paying off your debts to improve the credibility of your firm. Apart from this you also get to work on your firm’s future. This will include knowing your new client requirements and understanding if you will be able to accommodate them. Trucking factoring companies help you run your business more smoothly.

 

Choosing the right factoring company is essential for the smooth running of your business. Cost is only one of the determining factors when deciding on the firm. Verify their credibility and experience in this field before signing a contract. You may also want to know about online services and customer credit verification services if you are looking for a complete package. The time between placement of request and receiving of funds is vital. Be sure to understand all their terms and conditions before committing with a company.

 

Trucking factoring companies have redefined the operations of a trucking firm.. They have improved the effectiveness of small and medium sized firms. Gone are the days when smaller trucking companies had to shut down due to poor funds. Factoring companies step in the gap and give them the best chances of surviving and achieving success. Choose a reputed factoring firm and soar to higher places sooner than expected.

 

 

 

 

Account Receivable Financing Articles

Explaining ‘Factoring’

 

A ‘Factor’ is a third party commercial financial company who purchases the Accounts Receivable from businesses: this transaction is known as ‘Factoring’. Factoring exists so that businesses can receive a quick injection of cash, as opposed to waiting the 60 or 90 days for customers to pay their invoices. Factoring is also known as Accounts Receivable Financing, and Invoice Factoring.

 

The majority of factoring companies purchase invoices and advance money to the business within 24 hours; however, the nature and terms of factoring can (and do) differ among financial service providers and industries. Depending on your customers’ credit histories, your industry, and other specific criteria, the advance rate on your invoices can range from 80% to as high as 95%. The factoring company not only collects on your invoices; it also offers back office support to your business.Once the factoring company has collected on your customer’s invoice,you’ll be paid the balance of the invoice – less the factor’s fee for assuming the risk. The primary benefit of factoring is that businesses no longer need to wait anywhere between one and three months for a customer to pay their accounts: they now have access to cash in hand so they can operate and grow their business.The Advantages of Factoring

 

There are a few reasons why factoring has become an invaluable financial tool for many businesses, including start ups. As mentioned above, the main benefit is that businesses can now receive a quick boost to their cash flow because factoring companies, in general, will provide cash on accounts receivable within 24 hours. This resolves the problems businesses experience with short term cash flow, and in many ways this injection of cash can help to grow a business. Besides handling your customer collections, factoring companies can also evaluate your customers’ payment and credit histories.Other benefits of factoring include:

 

• It can be customized to a business’s needs and managed to ensure that capital is available when it’s needed;
• It’s not based on your own business or credit history: it’s based on the quality of your customers’ credit;
• It’s not based on your company’s net worth: it provides a line of credit based on sales;
• There’s no limit to the amount of financing, unlike conventional bank loans;
• This financing will not show up as a debt on your balance sheet, because it’s not a loan.
Who Uses Factoring?

 

Companies of all different sizes, including start ups, use factoring; and today factoring has become common business practice across many industries. Factoring is now widely used in the transportation industry, including manufacturing, textiles, trucking, oilfield services, wholesale and distribution, and staffing agencies. Interestingly, factoring receivables is practiced in many countries around the world and has a long history of success.

 

Can I Factor? My Company’s New, with No Financial History

 

Yes, you can! In fact, factoring has become an excellent tool for start up companies because no company credit history or balance sheet is required. It’s not really your company’s finances that the factoring company is concerned with; they’ll base their financing on your customers’ payment histories and credit scores.

 

What Percentage of My Invoices Should I Factor?

 

The answer to this question really depends on the unique needs of your business. Some companies only factor invoices for customers who typically take a long time to pay, while others factor all their invoices. The receivables that a company can factor range anywhere from a few thousand dollars to millions of dollars each and every month.

 

What’s the Difference between Factoring and a Bank Loan?

 

• The difference between factoring and a bank loan is that you’re not assuming any debt with factoring because it’s not a loan;
• With factoring, there’s no emphasis on your balance sheet – it’s all on your customer’s invoices;
• In addition, a bank loan is typically one lump sum, whereas factoring provides a steady flow of funds;
• Factoring companies can also help improve your company’s balance sheet by assisting with your credit and collection functions;
• A bank loan adds to your debt, whereas factoring converts receivables (an asset) into cash (another asset);
• And of course, bank loans can be very difficult to get because they’re limited by your balance sheet.
How Do You Start the Factoring Process?

 

The factoring process can be very simple to set up. The customer will be asked to complete a short application form, and may be required to follow up with other reports and documents.

 

Recourse and Non Recourse Factoring: What’s the Difference?

 

• With Recourse factoring the client is ultimately responsibility for the payment of the invoice; whereas
• With Non Recourse factoring, the factoring company accepts responsibility for the risk of collecting the invoice.It’s important to note that some factoring companies over offer both types of factoring – recourse and non recourse.

 

What Are the Contract Terms and Fees Applicable with Factoring?

 

There are different fee structures with different factoring companies: some factors charge an overall factoring fee which is determined by the creditworthiness of your customers and the monthly volume of invoices; while others charge additional fees to cover shipping, money transfers, and other costs associated with doing business. Before signing with any factoring company make sure you understand the fees and terms applicable to your contract. Also note that most factoring contacts are renewed annually.

 

Do I Need Credit Insurance on Debtors?

 

Insurance is not typically required, but in specific circumstances it may be.

 

 

 

You Can Find More Information at  http://invoicefactoringcompanies.org/
and at www.factorreceivables.net

Call Us Today at: 1-800-986-1854