Picking the Best Factoring Company in 2018
A factoring company specializes in financing invoices from businesses that have cash flow problems due to slow-paying customers. Factors don’t lend money. Instead, they purchase the accounts receivable from their clients at a small discount. The client gets immediate funds for the receivable, and the factor makes a small gain when the invoice is paid in full. Products Most factoring companies offer invoice factoring as their only product . Factors can work with companies in most industries, with few exceptions. Some factors are generalists, while others customize their offerings to serve specific industries such as medical, construction, or transportation. Industries that use factoring For the most part, factoring can be used in any industry where goods or services are sold and paid for in net-30 to net-60 day terms. The following businesses and industries regularly use factoring: Trucking Freight brokers Owner-operators Busin...