Receivables Financing or Accounts Receivable Financing, also known as Factoring, is a financial transaction in which a business sells its outstanding invoices to a third-party “factor” or financing company. The business receives a cash payment for a discounted amount of the invoices and the factor is then left to collect on the invoices
Accounts Receivable Financing is used by businesses that need cash now and cannot afford to wait 30-90 days (or even longer) before customers pay their invoices. It is not a loan and you do not assume any debt by factoring your invoices.
How Receivable Financing Works
Account Receivable Financing can be explained in 4 simple steps:
- You perform work or provide a service to your customer.
- You send the invoice for said customer to a factoring company.
- You receive a cash payment from the factor, based on a percentage invoice amount.
- The factoring company collects payment from your customer.
- You receive the difference between the percentage already paid and the amount collected, minus the factoring company’s fees.
Top Questions To Ask When Seeking Receivable Financing
There are plenty of factoring companies out there. The key to finding the right one is to match it to your specific business needs. Some of the top questions you should ask to make sure the factoring company is right for you are:
- What is required for collateral?
- What fees are associated with factoring?
- What are your factoring terms and conditions?
- What industries do you work with?
- What percentage of the invoice will you advance to me?
Why Work With National Factoring Group For Receivable Financing?
National Factoring group matches businesses with factors who can meet their needs and then lets the business owner choose the best offer. This service is FREE to business owners and returns very competitive bids for your business. You choose the criteria that are important to you and then evaluate up to 10 offers all in one place.
We are committed to helping business owners find a factor that will help them grow their business and stick around for a long-term business partnership.
What Is Required To Obtain Receivable Financing
You don’t need much more than outstanding business invoices to obtain receivable financing. As long as your clients are credit-worthy, a factoring company will be interested in doing business with you.
How To Find Receivable Financing At National Factoring Group
National Factoring Group is the only factoring service that makes companies compete for your business. Once you fill out our online form, you’ll be matched with factors who meet your criteria. After that, you can choose up to 3 to compete for your business. Review their offers, make your choice, and collect your cash! It’s that simple.
The advantage of this approach is customized pricing to meet your exact needs as opposed to the block pricing you’d get directly from other factoring brokerage houses. Our approach is entirely focused on YOUR needs.
You can start searching for accounts receivables financing with National Factoring Group right now. Just fill out our simple form to get started!
We’re here to help you get the financing assistance you need at terms that work for you. If you have any questions about the process or the results you’ve received, don’t hesitate to contact us via our online form or by phone at 903-776-4NFG (4634).