What is Factoring?
Does it take 30, 45, or even 60 days for your clients to pay their invoices? Slow paying clients are expected in the business environment; however they make cash flow for suppliers, salaries and rent challenging. Factoring is the solution.
Factoring is the cash you need today for tomorrow’s growth
Factoring provides your company with the necessary capital for the function of your business. It is a financial tool that allows your invoices to get paid fast. Factoring is not a business loan; although, factoring is easier to obtain the capital you need. The biggest requirement for approval of funds is that your clients are credit worthy. How does it work?
Sell your invoices to us, one or as many as you like at a discount rate that you can live with. AFC waits for your clients to pay them, while you get instant use of the funds. This cash is called the advance. Once your client pays AFC, you get the second installment with a small fee for the transaction – the rebate. There are only three parties involved in the transaction of a factored invoice: your company, AFC, and your clients.
Before you decide to work with a factoring company, notify your clients. Once you turn in your invoices to AFC, the application process will begin and take 24hrs. If the debtor is credit worthy and the invoice is complete, you will be approved for funds.
Factoring is the simplest and quickest method of obtaining cash flow for business needs and growth. If you need the quickest form of finance, contact an AFC representative today!