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Accounts Receivable Factoring
Accounts Receivable Factoring Can Prove the Cash Your Business Needs

Accounts Receivable Factoring

What is Accounts Receivable Factoring?

Accounts receivable factoring is a financing solution used by companies to get immediate working capital. With accounts receivable factoring, companies sell their open invoices to a factoring company, in exchange for cash 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 weeks or months 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.

accounts receivable factoring companies

How Does Accounts Receivable Factoring Work?

Accounts receivable factoring is a very easy process. A company using accounts receivable factoring provides the work, services, or products to their customers as normal. When it’s time to invoice the customer, the company sends the invoice to their factoring company, such as TCI Business Capital. The factoring company will advance them a percentage of the value of the invoice. The invoice is forwarded onto the customer, who pays it in their normal terms. Once the invoice is paid to the factoring company, the remaining balance of the invoice is rebated to the company, less the factoring fee.

What are the Benefits of Accounts Receivable Factoring?

There are numerous benefits to companies using accounts receivable factoring for their financing. One of the main benefits of accounts receivable factoring is companies that are not eligible for traditional lending easily qualify for factoring.  Factoring lines are based on your customers credit and payment history, not that of your business.

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 over payroll, and can take advantage of new opportunities as they arise.

Finally, leading factoring companies like TCI Business Capital offer value-added services to aid and assist clients. These services include experienced relationship managers, invoice review and billing support, collection services, 24 hour online reporting and much more. These services strengthen your business and free up your time to do what you do best – serve your customers and grow your business.

Why Do Companies Use Accounts Receivable Factoring?

Accounts receivable factoring is an ideal choice of financing for many companies. Companies  in a start-up or initial growth phase are often ineligible for traditional bank financing. These companies can 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.

Why Accounts Receivable Factoring With TCI Business Capital?

Since 1994, companies across North America have selected TCI Business Capital for their accounts receivable factoring needs. At TCI Business Capital, we are driven to pride our clients superior service and support.  Our portfolio of services incudes:

  • Quick Approvals: We can approve your company for factoring in as little as 15 minutes.
  • Fast Funding: Once your account is set up and active, we provide same-day funding of your invoices.
  • Online Reporting: 24 hour access to account activity and reports.
  • Competitive Rates: Factoring rates customized to fit your business needs.
  • Growth Opportunities: Factoring lines ranging from $50K to $20MM.
  • Customer Service: Dedicated relationship managers and funding teams, with knowledge and experience.
  • Industry Expertise: We factor companies working in a variety of industries.
  • Accounts Receivable Management: Our accounts receivable management services include integration with billing software, image archiving and payment postings.
  • Credit Analysis & Risk Management: We make credit and payment information available so clients make the right choice when working with new customers.
  • Accounts Receivables Collections: Our dedicated team ensures your invoices are paid in a timely manner & the relationship with your customer stays strong.

For more information on accounts receivable factoring with TCI Business Capital,

Call us at (800) 707-4845, or contact us via the web.

How Does Business Grow With Accounts Receivable Factoring?

With the available cash provided from accounts receivable 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.  Look at the table below to see how accounts receivable factoring can lead to growth and profits.

Why Factoring Your Receivables Makes Sense

  SalesSales with Factoring% IncreaseSales with Factoring% Increase
*Opportunities to negotiate early pay discounts and ask for quantity discounts
Sales$100,000$200,000100%$300,000200%
Cost of Sales75%($75,000)($150,000)100%($225,000)200%
Gross Margin*$25,000$50,000100%$70,000180%
Fixed Costs($15,000)($17,000)13%($17,000)13%
Cost of Factoring1.5%0($3,000)($4,500)
Net Income$10,000$30,000200%$48,500385%