Factoring is the practice of purchasing and collecting accounts receivable or of advancing cash on the basis of accounts receivable. If a business needs extra capital for any reason, it may be a useful option. Factoring is also known as accounts receivable financing. The concept of AR factoring is to use the money of the factor to help make you more money.
Perhaps, your business does not receive payment from customers for one or two months. Many businesses offer options to customers that allow them to pay at a later date instead of at the time of sale. But you may need cash on hand to take care of business activities such as payroll. Waiting on your receivables may also limit your business in expansion. Without available funds, you may not be able to hire new employees, buy new equipment, or other actions that can help your business grow.
Businesses of all sizes and of various industries use factoring as a way to increase their cash flow. At Furniture Factors, there are no setup, minimum, or new customer fees. Our non-recourse program assumes the responsibility of client payment so that you are not at risk. Factoring may be a viable option for your business. Please call us at (662) 680-4600 with any questions. Apply Now!