The secret is out! Businesses large and small alike have found the overwhelming benefits of Accounts Receivable Factoring. Accounts Receivable Factoring, or “factoring”, is a form of asset based lending that can boost a company’s short term cash flow. It is not a loan; no debt is assumed by factoring, and the funds are unrestricted. Companies from large 500 Fortune Companies to small businesses averaging only a few employees make up the growing number who have had successful experiences with Accounts Receivable Factoring. These businesses have found that being able to pay off debt, purchase new technology, increase business growth by leaps and bounds, make payroll – virtually anything related to their business – has allowed for business opportunities in areas once thought weren’t possible to become increasingly attainable.
Over a year ago the world factoring total stood at well over 2 trillion dollars. While businesses seem to be familiarizing themselves with the advantages of factoring as a whole, there are still a number of questions that go unasked. Certain problems will arise and relationships become strained when we don’t have all the facts prior to establishing a business relationship.