Freight Factoring Benefits
FAST. FLEXIBLE. FUNDING
Accounts receivable financing, also known as factoring or discount factoring, improves your cashflow by turning your outstanding invoices into cash. Working capital loans for small business are difficult and expensive to obtain from traditional lenders, but getting working capital from factoring is fast and simple and the applying is free.
Factoring, or financing receivables, is done when a business sells its open invoices to a factoring company at face value less a discount fee. When you factor, you can get the cash you have earned today rather than waiting 30, 60, or 90 days to collect from your customers. Invoice factoring companies give you cash for a percentage of the invoice value up front, and then collect the invoice from your customers, paying you the unadvanced portion, less a small fee. It sounds simple because it is simple. Your time in business or personal credit won’t stop your ability to qualify and factoring has no impact on your balance sheet as it is not considered a loan.
Why factoring services?
- Improve cashflows
- Faster payments
- Get credits easily
- Avoid slow payments from clients
- Provides clear payment terms to the clients
- Manage customers' credits better
- Easy acquisition
- The short-term solution for fund exigency
- Invoices to be used as collateral
- Used by small booming business
