Factoring has a long-standing history and is nowadays widely accepted and used as a financing source in many industries. It is also known as "Accounts Receivable Financing or Funding", which is simply the process of purchasing accounts receivable (invoices) from a business at a discount.

Accounts Receivable Financing or Factoring is neither a form of debt, nor is it equity financing. It is not a loan!  Factoring is a cash flow solution that doesn't involve borrowing or giving up any ownership in your business. Since there is no debt or equity involved, Factoring is more flexible than many other traditional forms of financing and easier to quality for.

Any business can benefit from Factoring as long as an invoice is generated, and a verifiable product or service is delivered to another business or government.

Why would you want to wait 30, 60, or 90 days for your customers to pay their invoices?

Accounts Receivable Financing/Factoring is a very simple, quick, and cost efficient way to improve your cash flow immediately, without creating any form of debt. In fact, this is one of the things that make Factoring so unique and attractive. The process of converting your accounts receivable into cash within 24-48 hours, and thus turning your business into a COD operation through Factoring, is straightforward and convenient.

14 Good Reasons Why Many Smart Business People Use Factoring

1. Obtain immediate and dependable access to unlimited working capital without incurring additional debt because it is not a loan.
2. Convert your A/R into working capital and turn your operation into a COD business.
3. Contrary to bank loans, it enables you to obtain cash funds quickly based on the creditworthiness of your customers, not yours.
4. Only requires a minimal amount of paperwork and no lengthy application and approval process.
5. No restrictions on the use of the funds you receive: Provides on-time cash for payroll, tax payments, marketing, business expansion, new equipment, or any other debts and may even eliminate the need to file bankruptcy.
6. Boosts your purchasing power vis-à-vis your suppliers (lets you benefit from their early payment or volume discounts).
7. Makes it easier for your customers to buy from you, because you can offer extended payment terms without adversely affecting your cash flow.
8. Eliminates the need to offer early payment discounts to your customers.
9. Allows you to retain control and equity in your business, because it eliminates the need for outside investment.
10. Improves your balance sheet by increasing cash and decreasing Accounts Receivable.
11. Quickly strengthens your company's financial statements and credit rating.
12. Helps your company qualify for other financing through existing banking relationships.
13. Provides you with credit screening and credit monitoring tools of your customers.
14. Gives you the financial freedom to focus on your business and its growth instead of administration.

The Funding Process

Step 1: Contact Nationwide Funding Solutions for a free consultation to see how Accounts Receivable Factoring can be beneficial to your cash flow needs.

Step 2: Complete a short business profile and participate in a brief three way conference call with the appropriate Factor, selected by Nationwide Funding Solutions.

Step 3: Receive a proposal with the most appropriate funding solution for your review.

Step 4: Once you agree, due diligence is completed, your account is approved and opened. You're ready to factor your invoices.

Step 5: Invoices are verified, and the funds are advanced to you within 24-48 hours.

Ask Yourself 6 Simple Questions

1. Is your business sometimes short of cash, i.e., is your Accounts Payable cycle shorter than your Accounts Receivable cycle?
2. Can a better cash flow help you take advantage of supplier discounts or generate more sales?
3. Is your business growing, or could it grow faster with an improved cash flow?
4. Do you wish that your customers paid their invoices sooner or even on a COD basis?
5. Is your income affected by seasonal slowdowns?
6. Is your business growing so rapidly that its cash flow can't keep up with its growth?

Experience across many industries and businesses suggest that a "yes" to any of these questions can make A/R Financing extremely advantageous for you.  As a matter of fact, an adequate and constant cash flow is crucial for any business and its growth at any time.