We live in the disinformation age, so it’s no wonder that there are myths swirling around all types of topics, including Factoring of Accounts Receivable. Luckily, this problem is easy to solve: Come with us as we debunk three common myths about Factoring.
Myth 1: Factoring Is Difficult
This is probably the biggest myth about Factoring of Accounts Receivable. While some people may feel that Factoring is difficult, this is because often they don’t take the time to do some quick, basic research. In fact, Factoring can be summarized in three simple steps:
- Sell your unpaid invoices to a Factoring company (called “factor”).
- The Factor pays you immediately, minus a small fee, so you don’t have to wait 30 to 90 days to get the cash.
- The Factor proceeds to collect the invoices from your customers.
If you work with a non-recourse Factoring company (such as ACS Factors), the process ends here—you keep the money regardless of whether the Factoring company is able to collect the invoices from your customer or not. On the other hand, if you chose a company that offers recourse Factoring, then you’ll be responsible for any uncollected invoices.
Myth 2: Factoring Is a Short-Term Solution
If we had to define Factoring with one word, that word would be “Flexible.” Factoring as we understand it at ACS Factors can be used to cover long- or short-term needs, depending on the requirements of your business. Whether you need a way to bridge a temporary cash gap or a reliable long-term solution to deal with slow-paying clients, Factoring is always there for your company.
Myth 3: You Have to Factor All Your Invoices
Some people believe that when they enter an agreement with a Factoring company, they have to Factor all their invoices. Nothing could be further from the truth. To begin with, few companies require you to Factor every single invoice. Additionally, at ACS Factors we offer benefits that make Factoring an even more convenient financing alternative:
- No early termination fee—ever!
- No fees if you don’t factor
- Easy-to-increase funding limits
- Hours to approve
- Month-to-month deals
- No deposit or application fees
ACS Factors: We Turn Your Invoices Into Immediate Cash
At ACS Factors, we help you get the capital you need to move your freight business forward. We are located in Upland, California, and have many clients in the distribution and logistics corridor which includes Ontario, Riverside, Fontana, Jurupa Valley, and Moreno Valley.
Reach out today by email (firstname.lastname@example.org) telephone (909-946-5599), or through our social media accounts on Facebook, Twitter, and YouTube, and start converting your accounts receivable into cash today!