Factoring 101.com

Accounts Receivable Factoring for Cash Flow

Invoice factoring, also called accounts receivable factoring, is a great way to help manage cash flow by providing you with an alternative to traditional bank loans.

Factoring is basically selling invoices to receive money today instead of waiting 30 to 90 days to be paid from an invoice. Factoring fees are paid as a percent discount deducted after all invoices have been paid to the factoring company. Accounts receivable factoring frees up your time for higher-value activities, reduces stress, and frees up working capital.

However, it can be frustrating wading through online information on accounts receivable factoring and it's unfamiliar and arcane terminology. In this way, you can be better educated when contacting accounts receivable factoring companies.