Frequently
- What is account receivable financing?
- How much is it going to cost my business?
- What type business qualities for factoring receivable?
Accounts receivable financing is the selling of outstanding invoices or receivables at a discount to a factoring company. This provides immediate access to cash that is normally tied up for 30, 60 or 90 days in accounts receivable invoices that will allow you to take advantage of growth opportunities, debt reduction and manage your daily expenses.
Our fees depend on the industry, the credit quality of your customers and the advance rates. We ensure that you understand exactly what the cost will be prior to factoring. In addition, we will work with you to help you minimize your fees.
Factoring is a financing alternative available to almost any business with commercial accounts. A factor purchases its clients' creditworthy accounts receivable at a discount providing them with a means of financing their current operations and future growth. Almost any business that is selling on payment terms can benefit from factoring their accounts receivable.
Asked
- How does factoring differ from a traditional bank loan?
- Can a business with a history of bad credit or a new business with no credit qualify?
- Must I agree to a minimum or a maximum volume?
Banks make decisions based on your company's financial history, cash flow and collateral. Factoring decisions are based on the creditworthiness of your customers. Since factoring is not a loan, you do not carry a liability on your balance sheet. Most importantly, we can get you the funding you need in days while banks generally take weeks or even months.
Yes! Another benefit of accounts receivable funding is that we rely more on your customer's creditworthiness than your own. And, as part of our service, we do the research to assess your customer's creditworthiness for you.
No. Factor one invoice or as many as you need to meet your cash flow needs.
Questions
- How will customers be treated?
- Is factoring just for failing companies?
At Henley Financial, we treat every one of your customers with the highest level of courtesy and professionalism. Our aim is to help your business grow.
No. Factoring in the past had gained a reputation as a financial "last resort" for faltering businesses. While factoring can help problem businesses, it is primarily a source of financing for new or rapidly growing businesses. Factoring allows businesses to improve their cash flow and quicken their growth by shortening their receivable cycle. By selling their invoices, businesses can eliminate the 30, 60, up to 90 (or more) days to wait for their customers to pay on their accounts.