Factoring Account Receivable

 

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“The benefits of using a Factoring Account Receivable Service are numerous.  I especially like the Free Credit Service.  It’s saved me tons of money.”  Michael - MA

More information on Factoring Account Receivable

Factoring Account Receivable is a financial transaction whereby a business sells its accounts receivable, (invoices) to a Factoring Business at a discount in exchange for immediate cash.

Factoring Account Receivable is different from a bank loan in two significant ways. First, the Factoring Account Receivable Company places the emphasis on the value of the receivables, not necessarily the firm’s credit worthiness or fixed assets. Secondly, factoring is not a loan – it is the purchase of a financial asset (the receivable). The receivable is a financial asset associated with the debtor’s liability to pay money owed to the seller for work performed or goods sold. The seller sells its invoices (the receivables) at a discount to the Factoring Account Receivable Company to obtain the cash needed for day-to-day operations.

The sale of the receivables (or invoice) transfers ownership of the receivables to the Factoring Account Receivable Company. The account debtor is then notified of the sale and then remits payment directly to the Business Factoring Companies Lockbox.

Factoring Companies provide other mission critical services including Credit Analysis, Risk Assessment, AR Management, Billing, Collection, Treasury and 24/7 web reporting.

There are three integral parts to a factoring transaction.
1. The Fee, this is the amount an Factoring Account Receivable Company will charge you for the service. Most Factoring companies will charge you a Factoring Fee also known as a service charge as well as interest based on how long it takes the debtor to pay.
2. The Advance, this is the percentage of the Face value of the invoice you will be paid upon submission of that invoice.
3. The reserve, this is the remainder of the total invoice amount held until the payment by the account debtor is made in full.

There are many different ways a Factoring Account Receivable company can call this service including, Business Factoring, Factoring Business, Factoring Companies, Factoring Loans and Invoice Factoring.

TCI Factoring is a leading Factoring Account Receivable company. We provide our Invoice Factoring service to a wide variety of small to mid size companies.

We have earned a reputation for providing world-class service to companies who need Factoring lines for their businesses.  When searching for Factoring Companies, look no further than TCI Factoring.

Banks often call their factoring programs Factoring Loans. Don’t be confused with this statement because factoring your accounts receivables is not a loan. Factoring is simply the sale of your Invoice at a discount to a Factoring Company. 

Are you interested in learning more about our Factoring Account Receivable?

Call today and talk to one of our factoring specialist. Our factoring specialists will give a free consultation on how invoice factoring can help your business succeed.  With TCI Factoring there is no red tape to cut through or bureaucratic maze to navigate. We make the factoring application process simple and straightforward, what more, we’ll get you approved in just 5 minutes.

Want to learn more about Factoring Account Receivable? Call 800.707.4838 or Click here

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