Accounts Receivable Financing / Factoring

Factoring is a fast and flexible method of improving your cash flow and providing working capital for your company. With factoring, you get immediate access to cash that is normally tied up for 30, 60, or 90 days in accounts receivable invoices. This will allow you to take advantage of growth opportunities, reduce debt, or provide for daily operating expenses.

Here are some primary advantages to factoring your accounts receivable (invoices):

* Provides fast financing.
Accounts receivable factoring is a relatively fast and painless way to obtain cash quickly, avoiding the documentation required for a bank loan (business plan, 3 years of profitability, etc).

* Frees up your time.
Outsourcing your accounts receivable invoice to another company can free up your time to focus on more high-value activities and relieve stress.

* Frees up your cash.
Many companies have working capital tied up in their inventory. Accounts receivable factoring allows you to free up this cash that would otherwise be tied up in inventory.

The process is simple. Once your account is set up, which takes from 3-5 days, you deliver your goods or services to your customers, just as you do now. Then invoice your customer and fax us a copy. Within 24hrs. after we verify the invoice, you are advanced up to 90% of the face value, which is wire transferred into your bank. We hold the 10% in what's called your reserve account. When your customer pays on the invoice, you receive the balance from your reserve account, less the previously agreed upon factoring fee. You can repeat the process as much as you want, when you want.

All businesses eventually meet with financial set-backs. Larger and financially secure companies can rely on credit lines and bank loans during hard times or slow cash flow periods. Not all businesses qualify for these types of services. We can, in most cases, help clients who have experienced or are currently experiencing financial hardship such as bankruptcy, tax liens, and personal credit issues. The underwriting requirements for accounts receivable financing or factoring are less stringent than traditional bank financing. In accounts receivable factoring the emphasis is placed on the creditworthiness of your customers.


For a free consultation and more information on accounts receivable financing/factoring, please contact us today!

Central Coast Capital Business Funding (510) 645-9046

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