It is easy to be overwhelmed when looking for a factoring company. There are so many flashing ads and confusing buzzwords a businessowner can be quickly led down a path that seems right but ends up costing dearly. Here are the top 5 questions we get about accounts receivable factoring.
How Do Factoring Rates Compare to Merchant Cash Advance Rates?
A Merchant Cash Advance (MCA) and factoring are considered for short-term financing. While some may consider an MCA easier to get, this ease comes at a cost. Your cost of capital for an MCA will be much more expensive than factoring your invoices. Unlike factoring, and MCA will have direct access to your checking account in the same way automated payments might go to your mortgage lender from your checking account. Independent review sites have listed the rates of different MCA’s 2 to 6 times more than conventional factoring rates.
How Fast Can I Get Funded?
Our fast track program can get a prospect funded in 72 hours or less! After a client is set up, clients present their invoices and are funded the next morning.
What if I Have Poor Personal Credit?
American Receivable realizes that the challenges of operating a company will often negatively impact the owner’s personal credit. That is why we focus on the credit strength of your customers. ARC uses multiple commercial credit reporting agencies to build a solid factoring program for your company.
Do I Have to Sell All My Invoices?
ARC allows for it’s clients to pick and choose which invoices they sell, and when they want to sell them. This allows our clients to have significant savings over our competitors.
Is American Receivable Reliable?
ARC is a 42 year old factoring company that has been America’s Top-Rated factor by Top 10 Reviews and Business.com for the last 8 years. We have 5-star reviews on Google. The owners of ARC are available daily to help manage their clients towards success.