Expert Factoring Company
Do you have any idea about what factoring means or what exactly it can do for your company?
Factoring, also called as accounts receivable financing, is a type of asset-based lending that can enhance a firms short-term flow of cash. It is neither a debt nor a loan and the funds are also unrestricted.
Firms basically sell their invoices to a factoring firm in exchange for an immediate cash advance. Factoring companies can advance your funds in as less as 1 day, providing you advances up to 98% of the net amount.
Who offers factoring?
All the different sizes of firms such as from large size companies, to individual-employee operations, it provides quick cash. Companies can use this cash to grow rapidly, pay off their debts, invest in a new technology, hire new work staff, or anything needed to strengthen the business.
Understand factoring better with the following example: