Working Capital Factoring - Free up working capital fast!

Working Capital Factoring

Working Capital Factoring lets you free up your outstanding accounts receivable invoices for cash. Fast growing businesses usually need to invest cash before finishing the work/product and therefore before billing the customer. What makes things worse is that now your customer waits another month or two before paying the invoice. That leaves you gasping for cash to fund the work/product for your next customer. You have a sale in hand, yet you can't deliver the work/product to your customer due to lack of cash.

One of your options to get some working capital is to go to your local bank and try to borrow the funds you need in order to survive. Banks are mandated to review your financials and business performance - oftentimes not being able to lend you any more than the total personal and business assets that you have. Banks aren't in the business of loaning money based on a purchase order from your customer - as a matter of fact, they could care less that you have business unless that purchase order is guaranteed to be paid whether or not your company performs. And of course, their review of your business isn't going to happen overnight so it can take weeks and even months before you get an answer to whether or not they'll loan you any money.

It's a vicious cycle. Fortunately, there's a way out of it. You can quickly free up working capital by factoring your current accounts receivable invoices. You've already done the work so why not get paid for it in a timely fashion?

Since factoring companies are not financial institutions, their business is to buy invoices at a discount, they aren't stifled by federal agencies so they can act quickly. Oftentimes they can get you cash within 24 to 48 hours!

If you want to see if your receivables qualify to be factored, take the time to fill out a brief online factoring form.

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  • Article Updated
    Jan 27, 2020
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  • What Our Customers Say

    I first considered AR Factoring when our business ran into a cash flow snag. Payroll was due in just 3 days and all of a sudden our largest customer adopted a "new policy" to pay our invoices no sooner than 54 days after they had been billed. And that was compounded by the fact that we had already paid our staff for the previous 30 days they had been working in order to meet the "deliverable" we had agreed to!

    Roger H.

    Ours was a small service business with about 20 employees. It sure was a relief to pay employees and vendors promptly - even while we were getting poor treatment from our big customers - invoice factoring was a great solution for us.

    Samantha A.

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