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Commercial
account receivable factoring - Keep your capital working by turning your accounts
receivable into immediate cash.
How? Third-party companies often
referred to as "factors" will outright purchase your accounts receivable (invoices)
in generally two phases.
Phase One: Immediate cash for as much
as 90% of the invoice's total value.
Phase Two: Upon full payment
of the order(s) by your customer to the factor company, you will be remitted the
balance less a small factoring fee.
So the remaining questions are
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Why give up any ownership of your company to obtain working
capital?
Why borrow money long term when you can factor your invoices
for immediate cash?
Why wouldn't you desire to: Expand into new markets;
Work with larger customers; Receive professional assistance with evaluating new
customer's ability to pay?
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