How Invoice Factoring / Accounts Receivable Financing Works
If you are a small to midsized company or a young and growing business with slow paying customers, you can fuel your business with Invoice Factoring. When you are ready to invoice, we can advance you up to 95% of the invoice amount the day the work is completed or the service is performed.
If you can’t afford to wait 30, 60 or 90 days to get paid by your commercial or government customers, invoice factoring or accounts receivable financing could be the cash flow solution your business needs to pay suppliers and/or to meet your payroll.
We have a quick and easy approval process that can get you set up in as little as 3 business days. GMA Factor does not sign you on to any long-term contracts. Our agreements allow you the flexibility to factor what you want, when you want. You can pick and choose the accounts that you want to factor. Get started immediately by filling out the quick application on the right-hand side of this page or go to our online or downloadable application.
What Is Invoice Factoring?
Factoring is a form of asset-based financing and is the process of selling commercial accounts receivables by a business in order to obtain immediate cash payment of the accounts before their actual due date.
Factoring differs from borrowing in that the accounts receivables are actually sold rather than merely offered as collateral. The net result is that your company can convert its receivables into immediate operating cash so that you will not have to wait….Click here to read the rest of this article.
What is Accounts Receivable Funding?
Accounts receivable financing is another name for factoring. Factoring is a financial transaction whereby a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount in exchange for immediate money with which to finance continued business.
Factoring differs from a bank loan in three main ways. First, the emphasis is on the value of the receivables (essentially a financial asset), not the firm’s credit worthiness. Secondly, factoring is not a loan -it is the purchase of a financial asset (the receivable). Finally, a bank loan involves two parties whereas factoring involves three… Click here to read the rest of this article.