Unlike a Bank loan, factoring converts your accounts receivable into immediate cash.
A business can factor its receivable assets to meet its present and immediate cash needs. It will enable the company to improve the cash flow for its business.
Cash advanced to the holder of the Accounts Receivable varies, but is generally between 75% and 95% of the value of the accounts.
The amount advanced is not based on the status of the holder of the Accounts Receivable, but on the strength and creditworthiness of the business owing the funds.
Factoring is a financial transaction, a type of debtor finance in which a business sells its accounts receivable (its invoices) to a third party at a small discount.
The advantage to the company selling its invoices is that it will receive cash into their business which will enable it to not only meet its account payable commitments but to purchase additional inventory or materials for manufacture and thus continue a pattern of growth and expansion.
Once the company is approved and has completed its first transaction, thereafter it has submitted its AR’s it can expect to receive cash into their bank within 24 to 48 hours.
Over the years we have developed excellent relationships with selected major Factoring companies. These companies have the strength to bring cash to the table at very short notice once you are registered and approved. Each of the companies we work with have their own lending parameters and therefore we are able to offer Factoring services to a vast range of our clients, whether they are a small Mom and Pop operation or a large multi-million-dollar company
- Manufacturers, Distributors Wholesalers
- Trucking & freight Companies.
- Staffing Agencies.
- Government suppliers
- Call Centers.
- Delivery Services
- Oil & Gas Services
- Business services & Consulting
- Engineering firms
- Architects Builders
- Import & Export Companies
- Information Technology Aerospace firms
- Security firms
- Janitorial & Cleaning Services
- Landscaping Companies