What is Invoice Factoring?
Invoice Factoring is a widely-used form of financing in the financial industry among
growing companies, recovering businesses, and entrepreneurs. Many of the largest
and most stable corporations in America and Europe utilize invoice factoring as
a means to speed up their cash flow so that they can seize opportunities to increase
their market share.
Advantages of Factoring over Bank Financing:
- Invoice factoring provides an unlimited line of working capital, limited only by
the amount of business you can generate, not on the amount of your assets
- You qualify for cash advances based on your customer's creditworthiness, not yours
- Invoice factoring does not increase your debt position
- Invoice factoring can help improve your credit rating & collections
- New orders generate cash within 24 hours - not 60 days
- No time-consuming Bank audits are required - and no restrictions on the use of proceeds
Proceeds from Factoring can be used to:
- Increase your sales
- Take supplier discounts
- Increase your staff or fund payroll
- Purchase new equipment
- Increase your inventory
- Improve your credit rating
Click the following link for an illustration showing
how factoring works,
or
learn what makes American Receivable better than other invoice
factoring companies.