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ACCOUNTS RECEIVABLES 

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Selling Accounts Receivables is also known as factoring. Factoring is one of the world's oldest methods of finance. According to historians, factoring dates back to ancient Roman civilization, when merchants used factoring to settle their trade debts.

Factoring got started in America when early factors helped finance the pilgrims' journey to the New World. Colonists later used factoring to sell raw materials such as tobacco and cotton. The materials were shipped to a factor in England, who charged a fee for selling them. Factors then preformed the same function for goods shipped back to the colonies. The factors also advanced funds based on the companies' accounts receivables, just as factors do today.

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If you are a business owner, you know that doing business can create situations where your invoices or accounts receivables may take 30, 60 even 90 days to be paid in full. This can place an unforeseen and unwanted cash flow crunch on your working capital. Selling your invoices can reduce that cash flow crunch to help grow and expand your business.

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Factoring or Selling your invoices stimulates cash flow to increase working capital.

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HOW DOES FACTORING DIFFER FROM BANK FINANCING? 

Factoring is based only on your accounts receivables.
A client's ability to raise cash by factoring is based on the total accounts receivable, rather than on traditional measures of financial strength and stability.

Factoring provides continuing cash flow without the requirement of periodic payments or interim payoffs. 
New sales continuously create new power to obtain cash, and the business does not have to deal with renewal of loans or worry about maturity dates.

Factoring gives a business increased access to cash as sales and receivables increase.
There is no ceiling beyond which the factor must stop providing cash. The more sales a business makes, the more cash it can draw. The factor does not concentrate on the business's debt/equity ratio to provide funds, as banks do.

Factoring offers a dependable, continuing source of cash.
Never needing to make separate loan applications.

Factoring avoids the necessity of obtaining funds from venture capitalists.
Venture capitalists then receive an interest in the business and generally have a say in how the business is run.

Finally, factoring saves the business owner precious time.
Never having to wait for a loan board to grant or deny his or her loan. Loan boards' decisions are influenced by many considerations, and the outcome is often unpredictable.

With factoring, periodic delays and negotiations are eliminated, allowing the business owner time to do what he or she does best – run the business.

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How Will Factoring Benefit You?

It will stimulate Cash to Flow into your business
Relies only on the strength of a business's customers.
It's accessible. 
You get quick results.
And it's flexible

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