In previous posts, we have explored some basic aspects of Invoice Factoring, from the businesses that can benefit from Factoring to the Factoring terms every small business owner should know.
Today we would like to answer some frequently asked questions about Factoring of Accounts Receivable. This financing alternative is extremely flexible and convenient, and we believe that every business owner should be aware of its benefits.
How Can Factoring Help My Business?
The idea at the core of Factoring is selling your unpaid invoices to a third party company, or Factor, that gives you cash immediately and takes care of the collection process in exchange for a small fee. This way you don’t have to wait 30 to 90 days to get your money
This simple idea unlocks capital tied up in your unpaid receivables, helping you address a broad range of issues. Whether it’s managing your cash flow or helping you deal with slow-paying clients, the positive ripple effect has the potential to improve every aspect of your organization.
How Long Do I Have to Be in Business to Qualify for Factoring?
Unlike other forms of financing, where the track record of your business plays a key role in the approval process, with Factoring you don’t need to be in business long to access funds. After all, you are not taking out a loan, but using your own money. That’s why many startups are turning to Receivables Factoring as a viable alternative to gain working capital.
How Is Factoring Different From a Bank Loan?
These two financing options differ in many key aspects. The most important difference is that a bank loan is a withdrawal from an institution that creates debt for your business, while Factoring is a transaction where you sell your unpaid receivables without incurring debt.
Another important difference is that a bank may take months to approve a loan, while the process is much faster with Factoring, as we’ll see in the next section.
How Long Does It Take to Get Approval for Factoring?
Approval times may vary depending on many details, and some Factoring companies make you wait days before giving you an answer. The good news is that at ACS Factors you get approval in a matter of hours.
We have made it our mission to help you get the capital you need to move your business forward. When you choose ACS Factors you get other unique benefits that include:
- No minimum funding
- Easy access to owner/CEO
- Month-to-month deals
- No early termination fee
- We take the risk if your customer cannot pay
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 (info@acsfactors.com), telephone (909-949-5599), or through our social media accounts on Facebook, Twitter, and YouTube to learn more about the benefits of turning your invoices into immediate cash!
