How to Sell Accounts Receivable to A/R Factoring Companies

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BFF Manager
03/08
2017
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The biggest problem many businesses face today is not being able to get cash quick enough to pay the bills. Selling your Sell Accounts Receivableaccount receivables to factoring companies may be a viable solution to quickly get the cash you need.

Accounts receivable factoring provides finance against unpaid invoices. Regardless of their current financial condition, credit history or time in business, businesses providing goods or services to other businesses on credit may be eligible to sell their accounts receivables to a factoring company.

Typical factoring clients have previously been declined credit by a bank and have one or more of the following characteristics:

Rapid Growth
Poor Personal Credit
Operating Losses
Start-ups
Negative Net Worth
Delinquent Taxes
Highly Leveraged
Prior Bankruptcies
Forbearance

How to sell your accounts receivable to a factoring company?


A/R Factoring is a very simple and straightforward process.

  • Right after your company delivers goods or services to your client you submit your invoice to your factoring company.

  • The factoring company advances you the previously agreed percentage value, usually 70 to 90%, of the invoice within 24 hours.

  • When the invoice is due the factoring company collects outstanding debt, deducts its charges and then pays you the balance of the invoice value.

How to choose the best A/R factoring company for your business?


Accounts receivable factoring is a value added service and you should not choose your factoring company based on cost alone. Factoring not only provides a working capital facility that grows with your business but also provides a credit control function.

The most important qualities of a receivable factoring company are the capacity to provide the right level of funding against your unpaid invoices and the ability to deliver a credit control service in a timely, professional and courteously manner. At Gateway Commercial Finance, we have perfected the factoring process guaranteeing timely funding of your invoices without disturbing your customers.

We use advanced communication guidelines and state-of-the-art technology to provide you funding when you need it while protecting your business’ image.

You’re careful in your business decisions, hiring key employees, buying from strategic suppliers and funding your business should be no exception. Business is fluid and your funding partner should be no exception.

Take the time to call us now at 1-855-424-2955 or get started by submitting a Factoring Quote Form and see why Gateway is an ideal partner to help your business grow.

Invoice Factoring
Business Finance
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Comments

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Great work guys. This is the most complete information about factoring and QuickBooks I've been able to find online. Thanks a bunch!

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