What is Accounts Receivable Factoring?
Accounts receivable factoring is a form of business financing that allows you to sell your accounts receivable in exchange for immediate cash. This provides you with the financing you need and capitalizes your strongest asset – your receivables form strong credit worthy customers. The receivables factoring process is very simple and works as follows: • Your company delivers the goods or services to the customer • An invoice is generated and sent to the client and the factoring company • The factoring company advances you between 70% and 90% of the gross value of the invoice.
