One of the questions that often comes up with clients, prospective clients and referral sources is whether a factoring company is purchasing accounts receivable by providing a factoring facility or if they are making a secured loan with the accounts receivable as collateral.  The truth is that you will get a different answer depending on who you ask and the details of the factoring facility in question.  

Before we get too far into this discussion let me make it clear that I am not a lawyer and that this blog posting is informational only and is not a substitute for legal advice from a lawyer who specializes in these types of transactions. My staff and I have worked with some great lawyers to whom we can refer you if that is of interest (make a comment to me and I will send you the information).   

A factoring agreement is a legal document between two parties.  

Article 1: An Overview of Small Business Credit and Collections. This is a first in a series of blog postings from our online invoice factoring  firm.  If you like this articles please follow us on facebook or twitter (see follow buttons on the right).

Business is picking up around the country, and companies are preparing to meet the increased demand of a recovering economy. Still, the recession has small business owners cautious, and reasonably so. Thus, the question becomes, “How do I fund my small business to poise myself for growth while being fiscally conservative?” The answer is easy: try selling accounts receivable with Fast A/R Funding.

Throughout America, businesses have responded to the economic downturn by attempting to cut costs, attract new customers, and streamline their business practices. One of the best ways to do all three is by “going green” through the use of loans and accounts receivable services.

Factoring Definition made easy!

Happy Monday.  Today's Accounts Receivable Financing blog will focus on how availability is generally calculated for our clients.  

Fast A/R is a factoring company that is available all the time.  

Invoice Factoring with Fast A/R Funding is kinda of like the movie "Back to the Future".  Not exactly...but kinda.  Suspend your disbelief for a minute and let me explain, if I can.