Accounts Receivable Factoring

Does your business have long net terms for invoices, but slow accounts receivable? Is it affecting your operational expenses? Then accounts receivable factoring may be a solution for you. Factoring companies purchase your invoices and supply you with fast cash, and accounts receivable factoring, specifically, allows you to grow your business rather than wait weeks or months for payment. With this method, you’re able to pay off outstanding obligations right away and put your capital to use.

Accounts Receivable Factoring When Bank Loans Aren’t the Answer

When your business needs cash for growth, a bank loan isn’t the answer — accounts receivable factoring is.

Accounts receivable factoring is not a loan in that it doesn’t require payments or incur debt. Any business that sells on open credit to creditworthy accounts is eligible. With a bank loan, you’re financed at a set limit unless you take out additional loans and incur even more debt. There’s also a strict approval process, which means a new business with less than stellar credit may not be approved. With accounts receivable factoring, it’s the creditworthiness of your customer that matters.

Even if a bank loan is approved, the process can take a long time, too –usually longer than the net terms of your customers. Accounts receivable factoring offers instant approval.  

You can sell your accounts receivable—just a few or many—for instant cash. Cash for new orders, payroll or any other expenses that help your business grow.

Need instant cash for your business? For more information about New Century Financial and how factoring can benefit your business, contact us today. Take 5 minutes to apply now and receive a proposal within 24 hours. 

Accounts Receivable Factoring Is Simple and Easy 

If you aren’t familiar with accounts receivable factoring, you’ll be surprised at how smoothly it works. Here’s what happens:

1. You sell your receivable invoice(s) to a factoring company such as New Century Financial, receiving as much as 90 percent of the invoice amount in cash within 24 hours. As a reminder, the credit line is based on the financial strength of your customer rather than your business.
2. When your customer pays the bill, you receive the remaining cash minus a small fee for factoring services.
3. When you develop a relationship with a factoring company, you can return to that company regularly to alleviate any cash flow issues. Fuel your business’ growth when opportunities arise and take on larger jobs without incurring additional debt.
4. Accounts receivable factoring can strengthen your business’ credit history as long as you make sure the factoring company reports to credit agencies.

For more information about New Century Financial and how factoring can benefit your business, contact us today. Take 5 minutes to apply now and receive a proposal within 24 hours. Or call 866 579-1026 or complete our online application today.