Factoring is a practice by which a person or organization helps a company turn accounts receivable into immediate cash by purchasing the invoices of their accounts receivables.

Factoring can:

• Provide you with debt free working capital
• Carry you through periods of uneven sales
• Fund new marketing efforts
• Help alleviate rising energy and labor costs
• Provide immediate funds for expansion and modernization
• Allow you to take advantage of vendor discounts
• Free you from managing invoices and collecting payments

Maintaining a roster of outstanding accounts receivable is nothing more than extending free credit to your customers. These unpaid invoices deprive your business of valuable funds that could help your operation to expand or run more efficiently.  No matter how long you’ve been in business at some point you may require financing to help cover payroll, catch up on bills, purchase materials, or to expand operations.