What is Invoice Factoring?

 

Factoring involves selling a percentage of your sales invoices at a discount.

The factoring approach could be just right for you. But, there is more to consider in determining if factoring is right for your business.

How to Unleash your Cash Flow:

What could you do if this money was in your account within 3 days instead of 45 days or more? Do you have a large sum of receivables you're waiting to get paid on? That money is hanging in the balance.

How much profit could you yield with your own accounts receivables if you had access? You can dramatically increase your sales and profits by having faster access to your receivables.

 If we purchase your receivable today, minus the purchase discount, this will give you access to money as spendable cash in your bank account in 48 hours. That's factoring.

Selling your future receivables at a discount today, even with the discounted percent, means huge profits for you by having access to fast funding almost immediately.

Recourse or Non-Recourse; what-s the difference?

Recourse purchase of an invoice obliges you to be liable for the credit risk, usually 90 days from the date of invoice. If payment is subsequently received by us, you will be credited for 100% of the payment. This method provides for lower fees and can be very cost effective for most clients.

Non-recourse purchase of an invoice places all credit responsibility on the service provider. If one of your Non-Recourse Factored customers files for bankruptcy, Merchant Advisors either collects the invoice for its own account or absorbs the loss. Due to the increased risk to Merchant Advisors in this type of purchase, slightly higher fees may be charged.