How does Factoring your Accounts Receivable Work?
Factoring accounts receivable is a popular short term (asset) business line of credit; the line of credit is secured by your receivables. Some factoring lines of credit can be renewed every six months.
The age of your receivables make a huge impact on the underwriting decision of your loan. The older your receivables are, the less likely they can be accounted for the total value of your receivables, also known as factoring.
If your company has an outstanding large invoice or invoices owed by your client, the accounts receivable lender will advance on your outstanding invoice or invoices at a discounted amount. Furthermore, the invoice or invoices would be payable to the lender, not to your business. The remaining funds after the lender is paid will be returned to your business immediately.
Whether you’re a small business or mid-size company, go with a factoring institution that specializes in financing receivables than a bank, we have access to both.
“This type of financing helps companies free up capital that is stuck in accounts receivables.”
Favorable Industries for Factoring Accounts Receivables:
- Day Care
- Manufacturing Companies
- and more
For more information on how we can best serve your Fort Myers, Naples FL and Marco Island factoring loans and business finance, please fill out the online contact form about your concerns or give us a call at 855.477-9007 . Read what people have to say about First Pro Capital on our Testimonials page.
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