Accounts Receivable Factoring
Accounts receivable factoring is a way for companies to obtain fast working capital without the need for a loan or repayment. A company's accounts receivable (invoices sent to clients for goods, or services rendered) can be sold. The factoring entity takes on the risks of collecting the money owed by clients and provides the companies with immediate funds.
This type of financing may be an option for borrowers that don't quite qualify for asset based lending. In these cases, the borrower may be experiencing high growth, have a high concentration of receivables, or may not have the controls (administration or systems) in place to closely administer their accounts receivable process.
For accounts less than 30 days old, a provider may pay around 75 percent of the value of the invoice. For accounts that have been outstanding for a longer amount of time, the provider will typically pay less. Some providers are unwilling to take on accounts that have been outstanding for longer than 90 days.
CNF Exchange: The Convenient and Effective Way to Match Borrowers and Lenders
CNF Exchange makes the process of matching business factoring loan providers with companies in need of fast working capital easy.
If you’re a borrower, key benefits include:
- Access to a dedicated senior analyst to ensure your loan documentation is in order
- Secure connection with an extensive and growing local and national network
- The opportunity to compare several loan proposals to get the best possible terms
- Developing one profile that can be shared with several lenders
If you’re a business factoring loan provider or investor, you get:
- Access to only pre-qualified, serious borrowers
- The ability to establish new relationships to help your business grow
- Access to current deals that have been submitted within the past 30 days
- Choice of two affordable payment plans, both of which give you full site access without paying a dime
Borrowers and lenders can also take advantage of our Secure Document Management tool for secure and convenient document uploading and sharing, as well as our Press Room feature and Rewards Program. Contact us about business factoring loans today.