Fast A/R Funding is the online account receivables factoring service leader.  

This article will focus on how personal guaranties work for companies financing with asset based lenders or factoring companies.  

Asset Based Lending is a type of revolving commercial financing that allows a company to borrower against a discounted value of their assets.  Asset based lenders focus on the value of the collateral during the underwriting process more than the credit history of your company. 

If you are a student looking for information on factoring as it relates to math this is not for you.  

This is article is written for the business owner who has heard the term before but doesn't have a real idea what invoice factoring for business is.

Wikipedia defines factoring as the following:

"Factoring is a financial transaction whereby a business job sells its accounts receivable (i.e.,invoices) to a third party (called a factor) at a discount in exchange for immediate money with which to finance continued business. Factoring differs from a bank loan in three main ways. First, the emphasis is on the value of the receivables (essentially a financial asset), not the firm’s credit worthiness. Secondly, factoring is not a loan – it is the purchase of a financial asset (the receivable). Finally, a bank loan involves two parties whereas factoring involves three."

Ok, now that we got that out of the way.  We can talk about how factoring can help in the real small business world.  As defined above factoring companies buy invoices from small business for cash the business can use today, instead of waiting for their customer to pay in 30,60 or 90 days.    

There are a few important things that everyone needs to know about factoring before they start.

1. A factor will require that your customers pay the factor directly when the invoice becomes due

2. In most circumstances your business, and you personally will be liable for the advances the factor made to your firm if the invoices aren't collectible

3. A factor will typically file a lien against your business to secure the advances they have made

4. You will pay a fee for the factor service that usually tied to the time it takes your customers to pay.  The longer it takes, the more it costs

5. A Factoring company will typically advance you 80% of the value of your invoices

6. Factors will only finance business to business sales.  Sorry, consumer obligations probably wont qualify

7. Your invoices will have to be labeled as due and payable to the factor at the factoring companies address

This is only a basic description of factoring.  At Fast A/R Funding we are a little different.  We do everything online.  We don't use paper and we get things done.

For more information give us a call at the number above or click one of our fill out one of our "get more information" forms.  One of us will get back to you quickly.

• factoring
• Invoice discounting
• Invoice funding
• Invoice purchasing
• Invoice Funding 

1. A business that sells goods or services to another company on open account like 30 day terms.
2. The company that buys the goods or services from #1.
3. An Invoice finance, or factoring company.

A factoring agreement is a legal document typically between two entities.

Cash flow factoring with Fast A/R Funding got a little easier today with our new ability to process customer sales by credit cards.  

The fifth part of our series on the process of how accounts receivable funding work we will focus on how Fast A/R Funding's clients get advances through our electronic factoring platform.

As part of our efforts to make the process as efficient as possible for our customers we ask them to attach their business wire instructions to their online account with Fast A/R Funding.

At the end of the application process for new customers, we ask our customers to enter their banking instructions on their online client dashboard. Once this is done, we are able to process accounts receivable funding and make continued wires to our clients with minimal effort. There is no waiting for advances once a week and there is no waiting and hoping that a check arrives in the mail.

How can online factoring business Fast A/R Funding help your small company?

Many Successful entreneurs follow the golden rule of small Business: Do what you love and success will follow. And while it may be true that the vast majority of these entrepreneurs don't love spreadsheets, general ledgers, credits and debits, and factoring accounting facilities, running a business successfully has a lot to do with the financing of the small enterprises, and in particular, how to properly account for business transactions.