What is Factoring?

Factoring is the actual sale of an account receivable.  The receivable is sold to the factor in exchange for cash.  Since one asset (account receivable) is exchanged for another asset (cash), no liability is created.  In essence, every factored sale is a cash sale.  The company no longer must wait for collection of a receivable.  Therefore, a company has only to predict sales to be able to predict cash availability.

Factoring puts cash directly in your account within 24-48 hours of the time you invoice.  You get what you want, where you want it and when you want it.

With factoring, you gain permanent control of your cash flow.  Your cash flow headache becomes a thing of the past.

There are many benefits to factoring.