What is accounts receivable factoring?
Accounts receivable factoring or invoice factoring is the process of selling your invoices to a factoring company for up to 98% of its value. The invoices are then paid directly to the factoring company from your customers. Once your customers have paid, the remaining percentage will be returned to your business minus a factoring fee.
How long does the factoring process take?
After an initial 3-day approval process of your business, you can get your money within 24-hours.
How does accounts receivable factoring differ from a loan?
accounts receivable factoring is different from a loan in many ways. Loans also take up to 90 days to get approved and delivered. With factoring, there is a short 3-day approval process and then you will get funded in 24-hours! You also will never have to pay money back to us like a bank loan. The factoring company gets paid through your customers, leaving you debt free.
What if my business has bad credit?
Also unlike a bank loan, the credit of your business is not held against you. The credit of your customers is what matters because that is who pays the factoring company.
What type of businesses can be factored?
Virtually any business-to-business company can be factored. Factoring is available for several different industries such as: healthcare, staffing, manufacturing, trucking, technology, construction, oil and gas, and more. Factoring is available for all small and start-up businesses.
What are the benefits of working with a factoring company?
An accounts receivable factoring company can provide your business with the capital it needs to grow and take on new clients. The money you receive from the factored invoices can be used on any business expense that you choose such as payroll, equipment, rent, etc. You can also choose to factor whatever invoices you want. You are in total control of this process. Some factoring companies also provide extra services such as payroll and back office support.
Will my customers think negatively of factoring?
No. Factoring isn’t used when you are in debt, and doesn’t create debt. It is simply used to increase your cash flow and have positive effects on your business. Your customers may also appreciate the fact that they have more time to pay their invoices, since you have already received the payment.
Why should I work with EZ Factoring Companies?
We have your best interest at heart. We work with various different types of businesses and industries. We understand that no two businesses are alike, and neither are financial situations. We want to provide you with the best factoring services possible to meet your needs.