Introduction to AR Factoring
If your business is
struggling to keep up with expenses or pay its taxes, or if you
need immediate funds to get over a specific hurdle - you might
want to consider Accounts Receivable Factoring. It is a
financing procedure where you sell your invoices, at a
discount, to a financial firm called a Factor.
It is not a loan. It is the
sale of an asset, much like a truck or a piece of machinery,
and is based solely on the credit-worthiness of your customers,
not on your credit history.
Factoring has been around,
in one form or another, for hundreds of years. And has, at
times, been thought of as ‘last resort’ financing; businesses
that factor their debts must be in financial distress. That is
no longer the case.
Factoring has made a strong
resurgence lately because of the tightening of credit and the
difficulties in obtaining bank loans. Bank lending has dried up
and is no longer an option for most companies. By contrast,
invoice financing is relatively easy to get, terms are less
restrictive and the funds are available more
quickly.
To compare free
factoring quotes from multiple vendors, use the following
tool...
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