Factoring accelerates cashflow from outstanding (unpaid) account receivables to bridge the funding gap (Up to 120 days) between an invoice and receipt of payment from your customer.
Non-Recourse Factoring (also known as Traditional Factoring) involves outsourcing accounts receivable management, including credit protection and collection services. This solution helps businesses reduce administrative burdens and operational costs while shifting the payment risk to the factor. Once an invoice is approved, companies are protected from the risk of a customer’s financial inability to pay, ensuring stable and predictable cash flow.
Important Factors to Note:
Recourse Factoring (also known as General Factoring) provides advances against unpaid accounts receivables that are primarily secured by the credit worthiness of your customers. You (a/k/a Seller) of the invoices maintains the ultimate payment risk if an invoice goes unpaid. Factoring accelerates your cashflow from your first ever invoice, through periods of rapid growth.
Important Factors to Note: