Find Pre-Screened Factoring Companies

Factoring is a type of financial service whereby a company sells its account receivables to a third party, known as a factor, in exchange for immediate money in which to finance continued business.  The receivables are sold without recourse, meaning that the factor cannot turn to the seller in the event accounts prove uncollectible. 

There are some financial limitations within business factoring that must be addressed.

• Most factors prefer to work with companies that can supply a minimum of $5,000 to $10,000 in accounts receivables for a 30-day period.
• Business factoring allows high risk, nontraditional businesses such as the textile or garment industry an option to receive the financing they need.
• A company that can benefit from quick access to their invoiced funds and able to meet minimum monthly requirements of invoice factoring is a good candidate for this type of short-term business funding.

If your business needs some quick cash this is just one option within a wide variety of asset-based lending.  These are great types of loans for businesses who need to support credit needs but cannot obtain bank financing on a fully unsecured basis.