What is Factoring?

Factoring is a fast, reliable and often under-utilized method of financing which significantly improves a company’s cash on hand.

A business can often find itself in a cash flow bind by offering credit to their customers for 30 days or more yet, still have to regularly pay certain expenses, particularly payroll. This problem can only get more stressful as sales grow. When factoring, your invoices are used as collateral for short-term loans that provide you with immediate cash to meet these obligations.

There are several advantages and benefits to invoice factoring.

  • Increases the cash available to you
    Factoring often provides more cash than bank lines of credit.

  • No random line of credit amount
    You borrow based on your sales so you’re always set up to finance your growth
  • Cash on hand is more predictable
    By speeding up your cash flow, factoring makes it easier to control your cash since your income is more predictable than not knowing when the customers payments will be sent.
  • Greater control of your cash by factoring
    You can factor only those invoices you want, when you want.  Usually, there is no minimum factoring level or commitment to factor in the future.

  • Improved credit evaluation
    Factors can provide credit reports and expertise in helping to assess new customers or changes to existing ones.

The Truth About Factoring — Unwrap the Cash Held Up In Your Accounts Receivable

How does factoring work?

Is Factoring For You?

How do I get started with factoring?

Best of all, when you use CFIC Funding, Inc., you’ve added a group of business professionals to your team whose expertise can benefit you far beyond just financing. So, if you’re ready to move your business to the next level, call CFIC Funding at 310-421-7370 today.