Why Factor Receivables?

For small or growing companies, much of their working capital is often taking its time to arrive from the client.  These companies depend on that capital, and more important that it arrives on time.  These struggles can impair a companies growth and damage supplier relations.

You can convert these receivables into cash via factoring.  When factoring you do not have to factor all of you're receivable, some companies choose to select only a portion of their clients.  Essentially what you will be doing is converting your accounts receivable to cash with a purchase and sale agreement.  You typically receive 80 percent of the invoice value upfront. Then you receive the remaining value once the client pays the factor, minus a factoring fee.