Fujitech California

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Terminology

 

Accounts Receivable Financing

Here's how it works: 

The factoring company, purchases a business's commercial accounts receivable, then advances the cash to fund the business. It's that simple. This enables the business to have immediate access to the cash, without needing to wait 30 to 60 days to be paid by its customer. Advances up to 95% of the invoice face value are usually available, and credit limits from $10,000 to $10,000,000 make factoring a solid alternative for small and medium-sized businesses alike. 

Factoring enables a business to offer credit terms that many larger customers demand, without the worries or interruption of cash flow. Plus, a full service factoring company also functions as its clients' accounts receivable department, handling credit reviews, invoice mailing and processing, and providing full collection services, accounting and reporting. 

Our clients have found that factoring allows them to meet the daily cash flow demands of running a business, as well as reinvest in their company to increase profits. Whether it's taking advantage of supplier discounts, covering payroll, purchasing inventory or funding marketing efforts, factoring gives the business back the cash it needs to run efficiently.

 

 

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Last modified: 7/23/2011