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 Accounts receivable financing/factoring is the sale of your accounts receivable (invoices) at a discount off the face value in return for immediate cash. The funding source is known as the "factor" or trade finance company. The primary benefit is to provide immediate working capital and protect you from business (credit risk) losses. The factor may assume the responsibility for the customer's financial ability to pay and perform credit, collection and related bookkeeping functions.
Using a Non-recourse Factoring Program can help grow your business and reach your corporate goals by advancing cash for qualified receivables so you can avoid waiting for payment.
How Account Receivable Financing Works
You deliver a product or service and issue an invoice to your customer. The factor typically advances an initial payment of 70-90% of the invoice amount within 24 hours, less the factoring fee. When your customer pays the factor, the factor pays you the remaining percentage of the invoice, minus borrowing costs.
Export Financing Options
Favorable export financing can enhance your international sales efforts, giving you an advantage over your competition.
Receivables financing/factoring offer several important benefits:
· Access to Immediate cash
· Expand your business through increased, dependable cash flow
· Increase profitability and Build Your Credit Rating
· Protect against losses due to default (optional)
· Eliminate the Risk of Non-payment withour Non-recourse Service
· Reduce purchasing and financing costs
· Outsource your credit and collection management
· Professional Collection Department
· Take Advantage of Supplier Discounts
· Increase Sales by Offering Credit Terms to Customers
· Unrestricted Use of Funds
· Provide accurate and timely credit information on your customers
· Detailed Management Reports
· Expand export sales
The Gaudreau Group can help you take advantage of the cashflow flexability that Account Receivable Financing can give. Call today to learn more! | 
