Download Our Small Business Owners Guide to Cash Flow Infographic

Download Our Small Business Owners' Guide to Cash Flow

Cash flow is the lifeblood of any business. For business owners, forecasting and managing cash flow effectively is crucial to ensuring smooth operations, seizing growth opportunities, and navigating through challenging times. This free guide explores five essential tips to help business owners master the art of cash flow forecasting.

American Receivable is the Invoice Factoring company businesses from all industries trust the most

For over 40 years, businesses have trusted American Receivable for cash flow solutions.

businesses factor with american receivable

what is invoice factoring?

Invoice factoring is a financial transaction in which a business sells its accounts receivable (invoices) to a third-party company, known as a “factor.” The factor then advances a significant portion of the invoice amount to the business upfront, typically around 80-90% of the total value. The remaining percentage is held in reserve.

Here’s invoice factoring works:

Submit Invoices: The business provides the factor with copies of their unpaid customer invoices.
Approval and Advance: American Receivable assesses the invoices' validity and the creditworthiness of the business's customers. Upon approval, the factor advances a percentage (usually 80-90%) of the total invoice value to the business.
Collections: American Receivable takes on the responsibility of collecting payments from the customers directly. This includes sending reminders and managing the collection process.
Reserve Release: Once the customer pays the full invoice amount, American Receivable releases the remaining percentage (minus afee) to the business.

Key Benefits of Factoring

Improved Cash Flow: It provides an immediate infusion of cash, which can help businesses meet their financial obligations, cover operating expenses, and invest in growth opportunities.
Reduced Administrative Burden: The factor handles the collections process, saving the business time and resources.
No New Debt: Invoice factoring is not a loan. It’s a transaction based on existing invoices, so there’s no need to take on additional debt.
Flexibility: It’s a scalable financing option that can grow with your business. The amount of funding available increases as your sales and invoices increase.
Mitigation of Bad Debt Risk: Some factors offer credit checking services, which can help minimize the risk of non-payment by customers.

Who benefits from invoice factoring

Improved Cash Flow: It provides an immediate infusion of cash, which can help businesses meet their financial obligations, cover operating expenses, and invest in growth opportunities.
Reduced Administrative Burden: The factor handles the collections process, saving the business time and resources.
No New Debt: Invoice factoring is not a loan. It’s a transaction based on existing invoices, so there’s no need to take on additional debt.
Flexibility: It’s a scalable financing option that can grow with your business. The amount of funding available increases as your sales and invoices increase.
Mitigation of Bad Debt Risk: Some factors offer credit checking services, which can help minimize the risk of non-payment by customers.

why factor with american receivable?

For nine years in a row, American Receivable is named the Best Factoring for SMBs by Business.com

Named best invoice factoring company for SMBs by Business.com
No long-term commitment
No minimums or maximums
Rates starting as low as .8%, with up to 95% advances
Fast cash in as little as 24 hours
We operate independently and are not bank affiliated

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our partners love us

Excellent company. They worked with us through all our challenges and help us keep on task with all of the many things going on. The financing is simple and extremely quick to fund. They are a pleasure to work with.

Thank you for making this process smooth and non-stressful. Your team is professional, your rates are reasonable, your execution is timely and you are easy to do business with. I have worked with banks, financiers, factorers, etc. for the past 30 years as either an executive or consultant and American Receivable is the most efficient company I have ever worked with. The only draw back is you have to listen to some of Jack’s Dad jokes occasionally. Mike Cunningham, CEO Pronto Solutions, Inc.

Have been looking for invoice financing for a very long time. Needless to say, most companies in this sector are anything but trustworthy. That is, until I stumbled across American Receivable. Brad Gurney was my first contact point at the company and after a very easy processing, I was up and running with them. They are fast, there is no hidden fees and they communicate with you regularly. Highly recommended!!

American Receivable has played and continues to play a vital role in supporting our company's growth. We entered our industry as a motivated start-up and with ARC's support, have established ourselves as a value partner to our client base and are looking forward to exceptional growth in the very near term.

I cannot express in words how wonderful working with American Receivable has been - especially with the pandemic. I have a Nurse Staffing company, and they have made sure I had the funds for payroll, and that my business is running smoothly. I highly recommend them to everyone!