invoice factoring working capital

Receivable Factoring: A Tool To Scale Up

Receivable financing, also known as invoice factoring, is a financing tool where a business sells its account receivables, or open invoices, to a factoring company.  This type of financing is increasingly being used by SME (small, medium enterprises) to support their day to day working capital needs and fund their growth plans. 

Benefits of Factoring

  • Speed up cash flow. One of the main benefits of receivable factoring is that it helps SMEs accelerate their cash flow.  Business owners often have to wait for several months to receive payment from their customers creating a crippling shortfall in cash flow.  By selling their invoices to a factoring company the business owner gets immediate payment for open invoices.  Invoice factoring frees up the cash locked up in their accounts receivable, giving the business owner the cash they need to grow their business.
  • Reduce financial risk. Today’s economy is proving to even more risky for business owners as more companies are delaying payments and even filing for bankruptcy.  By financing their business with a Top Rated Factoring Company business owners get the extra benefit of detailed credit reporting on their customers.  This timely information is invaluable in protecting business owners from bad debt.
  • Qualify quickly.  While banks will demand collateral and several years of financials and tax returns, factoring companies look to the credit strength of your customers.  This makes invoice factoring especially appealing to SMEs that have just contracted with a larger corporation.  By focusing on your customers’ credit strength factoring companies move quickly, often funding a new prospect within a week.

Many SMEs are flourishing with new customers and growing demand for their products.  Receivable Factoring ensures that these businesses have plenty of cash flow while reducing their credit risk.  Call American Receivable today to get the financing you need to keep growing your company.

Jack Stieber:  | 972-404-4726

Sarah Fisher:  | 972-404-4726

Brad Gurney:  | 800-297-6652

Julie Adams:  | 800-297-6652

Dakota Stieber:  | 512-339-5112

Voted best Invoice Factoring Company for SMBs for 2023 by


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