Accounts Receivable Factoring

Factoring is a form of accounts receivable financing. This is a short-term working capital financing technique in which the company actually sells its accounts receivable. Under a factoring arrangement, the lenders agrees to take over a company's account receivable collections and keep the money from those collections in exchange for an immediate cash payment to the company. Factoring can be the best way for a company to get cash when regular business financing options such as business loans are limited.

Accounts receivable financing is most often used by businesses facing short-term cash flow problem. With accounts receivable factoring you can turn unpaid invoices into immediate cash to pay bills, improve cash flow, expand your business, pay off debt, and take advantage of new opportunities. Factoring can be valuable to small and medium-sized company. It is also important to understand, since accounts receivable are pledged as collateral, when your company does not repay the loan, the lender will collect the receivables directly from the customer and apply it to loan payments.

If you are interested in accounts receivable factoring, you should contact Business Factors. At Business Factors, they don't rely on personal credit scores, business history and lengthy application periods as with traditional funding. To get more information you can go to www.businessfactors.com