Factoring, or accounts receivable financing, is the practice of purchasing discounted accounts receivable invoices. Express Capital Financing can help you out if you provide products or services to clients that may take a month or two to pay. Because financing decisions are based on your customers’ credit history, not yours, this strategy can provide a great deal of funding even for bankrupt, startup, or struggling organizations.
Assets and Advantages
Rather than creating debt, financing receivables allows you to sell some of your assets. Unlike a typical asset sale, however, this strategy also gives you some important services in addition to the funding. This program allows you to virtually outsource your accounts receivable department, meaning that we can check your clients’ credit for you, provide detailed monthly reports, and alert you to potential risks. Some qualifying accounts can even receive credit insurance for free.
The money gained from financing receivables can be used for many different purposes, including payroll and standard operating expenses as well as responses to seasonal opportunities. You can use this capital to purchase bulk or discount inventory, take on newer and larger accounts, or fund any form of growth or expansion.