How Does Accounts Receivable Factoring Help Growing Businesses?

Account Receivable factoring, also known as invoice financing, is a widely used method of financing a business.  The factoring industry is now a 3 trillion Dollar industry worldwide!  The growth in the factoring industry has been fueled by both economic expansion and the growing start-up economy.

Hassle-Free Factoring

The process of factoring account receivables is simple and straightforward.  The business owner sells their outstanding invoices to the factoring company for cash.  The business owner now has enough money to make payroll, cover expenses and start the next project.  The factoring company will now wait for the invoice to be paid.  When the business owner needs more cash, they sell invoices to the factoring company again. 

By having a reliable cash flow, business owners are now able to pursue new customers and larger sales without worrying about how they will fund a growing business.  Companies experiencing a rapid expansion will need additional working capital to finance their growth.  This cash flow crunch often hits while customers are taking longer to pay their invoices, making the cash flow crisis worse.  The SBA cites negative cash flow as a leading cause of business failing in their first 5 years.

A Reliable Source of Cash Flow

Account receivable factoring is a fast way for business owners to solve their cash flow problem.  Factoring companies will often fund a new client in 5 days or less moving much faster than a conventional lender.  Once the factoring company has approved the company’s customer, the business owner can rest assured that the factoring company will buy their invoices. 

American Receivable has helped business owners grow their business for over 43 years.  Using our account receivable factoring service business owners have the certainty of positive cash flow while receiving top rated service.  Let the experts at American Receivable help your business grow. We have helped companies improve their cash flow with invoice factoring. It’s now your turn; call us today at 1-800-297-6652 or complete our quick application form.

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