A factoring company, also known as a factor, is a financial institution that provides invoice factoring services to businesses. Factoring companies specialize in purchasing accounts receivable (invoices) from businesses at a discount, providing immediate cash to the business in exchange for the right to collect payment from the customers listed on the invoices.
These companies typically work with businesses across various industries and sizes, offering customized factoring solutions tailored to the specific needs of their clients. Factoring companies assess the creditworthiness of the business’s customers to determine the risk involved and the discount rate at which they are willing to purchase the invoices.
In addition to purchasing invoices, factoring companies may also provide other services such as credit checks on customers, collections management, and invoice processing support. They play a crucial role in helping businesses manage their cash flow effectively and maintain financial stability by providing access to working capital without the need for traditional loans or lines of credit.
Factoring companies provides immediate access to cash by purchasing invoices, helping businesses address cash flow needs without waiting 30-90 days for customer payments.
Factoring companies prioritize customer service, offering personalized assistance, dedicated account managers, and responsive support to guide businesses through the factoring process and address any questions or concerns.
For more information, please contact America’s Factors at 800-794-6786, complete the Inquiry Form or Online Application.