What is Factoring

You make a sale, deliver the product or service and generate an invoice. Advance Rewards Funding, Ltd purchases the invoice from you and buys the right to collect on the invoice by paying you 80% to 90%of the face value of the invoice. The 10% to 20% value of the invoice not paid to you is called the reserve. This transaction provides immediate and predictable cash flow. Once we receive payment on the invoice the reserve is return to you less the factoring fee usually on the same day.

Most of the businesses we deal with are very much in an upward cycle, going through extremely rapid growth or a startup business.Businesses that use factoring like it because they get money quickly rather than waiting to be paid by their customers.

Advantages of Factoring

• Instant cash flow. When you provide a service on credit, it is common to wait 30 to 90 days on customer payments. That can lead to cash flow problems. When you factor, you receive an advance on an invoice, often within a day. This quickly builds up cash flow, allowing you to add employees, buy equipment, and cover other expenses that help you meet demand.
• Start-up funding. New companies often need financing to get up and running. But with no history, balance sheet or cash flow statement, they will not qualify for asset-based or cash-flow lending. Advance Rewards Funding does not have these requirements because it is based on the credit history of a company's customers. Advanced Rewards Funding will examine your customer credit scores, payment patterns and overall financial health before agreeing to offer financing. How long your company has been in business is not typically a major concern to the factor.
• Faster growth. Factoring has the flexibility and capacity to help your company grow at a faster pace than if it were self-funded or backed by a loan. Factoring is also easy to set up. Instead of shopping for a traditional bank loan, you can open a factoring account within days. Unlike bank terms, there is no limit to the amount of funding from Advanced Rewards Funding with a strong capital structure. The factoring volume can increase from thousands of dollars to millions of dollars within months.

Factoring is not a loan; it does not create a liability on the balance sheet or encumber assets.
Principles of the company include a Certified Public Accountant over 20 years of experience with startup and expanding businesses. Asset based lending. We offer no monthly minimums or long term contracts.
Are you ready to take your business to the next level?