Yes, invoice factoring is a widely accepted financial practice, particularly among small and medium-sized businesses. It provides a way for companies to improve their cash flow by selling their accounts receivable (unpaid invoices) to a financial company, known as a factor, (America’s Factors), at a discount. In return, the business gets immediate cash, while the factor collects the full amount owed by the customers on the invoices. This practice can be beneficial for businesses that need quick access to cash.

Invoice factoring is so widely recognized that nearly every retailer in the United States includes a blank on their purchase orders indicating whether the invoice is to be factored. Until recently, factoring was only available to companies with receivables totaling $20 million or more. Now, due to advances in technology, America’s Factors, a leader in the industry, can serve the small and mid-sized business community without incurring high administrative expenses. Coupled with the increasingly stringent credit parameters of institutional lenders, factoring has become a preferred financial tool for the small and medium-sized business.

For more information, please contact America’s Factors at 800-794-6786, complete the Inquiry Form or Online Application.