Accounts receivable factoring is a type of business financing where a firm sells their open invoices to a factoring company, in exchange for an immediate cash advance. Companies using factoring have the capital to meet payroll, pay bills, purchase equipment and supplies, and much more.
Companies use accounts receivable factoring because it is a fast, simple, and debt-free financing solution for businesses that cannot wait for payments from their customers. Companies in a wide variety of industries use TCI Business Capital for their factoring needs. We customize our factoring services to fit the unique situation of each client and help them reach their business goals. Qualify for our factoring programs today with a minimum of $50,000 in monthly invoicing.
The process is quick and easy. Here’s how it works:
There are numerous factoring benefits. First, companies that are not eligible for traditional lending easily qualify. Factoring companies use your customer’s credit and payment history, not that of your business, to determine eligibility
Second, having cash available helps companies meet payroll, purchase supplies and materials, settle payables, and grow. With cash on hand, companies eliminate the stress and worry of meeting payroll and can take advantage of new opportunities as they arise.
Finally, leading factoring companies like TCI Business Capital offers value-added services to aid and assist clients. These services include experienced relationship managers, invoice review and billing support, AR management, 24-hour online reporting, and much more. As a result, these services strengthen your business and free up your time to serve your customers and grow your business.
With the available cash provided by factoring, businesses can take advantage of new opportunities for growth. Adding equipment or staff, opening new markets, or introducing new products are all much easier with cash in hand. Consider the following table below to see how accounts receivable factoring can lead to growth and profits.
|Sales||Sales with Factoring||% Increase||Sales with Factoring||% Increase|
|Cost of Sales||($75,000)||($150,000)||100%||($225,000)||200%|
|Cost of Factoring||$0||($3,000)||($4,500)|
|*Opportunities to negotiate early pay discounts and ask for quantity discounts|
Accounts receivable factoring is an ideal choice of financing for many companies. Those in a start-up or growth phase are often ineligible for traditional bank financing. However, these companies easily qualify for factoring.
There are also situations where factoring receivables is a better choice than bank financing. Because top factoring companies like TCI Business Capital have experience in a number of industries, companies can gain insight and information on industry best practices and current trends.
Since 1994, companies across North America have selected TCI Business Capital for their accounts receivable factoring needs. At TCI Business Capital, we provide our clients with superior service and support. Our portfolio of services includes:
For more information on accounts receivable factoring with TCI Business Capital, call us at 800-707-4845, or contact us via the web.