Factoring occurs when a business sells its receivables to a 3rd party (factoring) company at a discount. The factoring company pays the business immediately and is paid by your customers later. If you are unfamiliar with the ins and outs of factoring accounts receivables we go in greater detail in a previous article, Factoring & Accounts Receivable Financing. What you have
If you own a business that offers payment terms for your customers of net 30, net 60 or even net 90, there is a good chance that you may experience cash flow issues from time to time. It is nothing to be ashamed about. In fact, in the manufacturing world it can show a sign of growth. Let’s say you are a manufacturer and have
If you are new to the factoring and/or debt consolidation loans industry some of the lingo may be a bit difficult to understand. We decided to dedicate a blog post to show an example of factoring and also to define common terminology used in Factoring & Accounts Receivable Financing. Before we jump into a glossary of terms you should know
What is Factoring? Also commonly referred to as accounts receivable financing, in factoring a business sells its receivables to a 3rd party (factoring) company at a discount. The factoring company pays the business immediately and is paid by your customers later. Factoring is becoming more prevalent as business owners realize it is a debt-free way to get paid sooner so