Factoring is the purchase of an Account Receivable for immediate cash.
The ability of the customer to pay is the primary consideration for the Factor.
Factoring is ideal for companies experiencing cash flow needs, including those
undergoing restructuring and rapid growth.
Early-stage companies also benefit from the use of factoring.
Benefits of Factoring
· You choose which customers to include in the program submission
· Credit / collection risk is assumed by the Factor
· Fast approval time
· Conserves other credit facilities
· Diversifies financing sources
· Allows you to take advantage of Vendor discounts
· Reduces costs associated with A/R maintenance
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