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 30, 60, 90 days or more for your customers to pay.
This process places the time, cost, and effort of collection into the hands of a funding company, allowing you the time to concentrate on running your company. Your company receives the cash it needs, when it needs it, so that you may best manage your business.
Factoring can be a great option for companies that need funds quickly, but who aren’t able to secure a conventional, bank loan. Factoring is known by other names. Receivables factoring, invoice discounting, invoice factoring and debtor financing are other commonly used names.
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.