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Return To Factoring Article Archive   Factoring Accounts Receivable By Carson Nash Accounts receivable financing is not a loan, so there is no need to make payments or create debt for your business. The major advantage of accounts receivable factoring is that it is easier to obtain than a business loan from a bank. Most factoring companies will approve a business based on the credit worthiness of the companies that are being invoiced and will not require a businesss financial statements or any repayment guarantees. Generally, the business will receive 70%-90% of the invoice amount in 24 to 48 hours after an account is established with a factoring company. When the factoring company receives payment for the invoice, the remaining 10%-30% is paid to the business less a service fee between 1.5% to 3% of the invoice amount per month. The factoring companies service fees vary based upon monthly volume, industry, and location. Types of commercial accounts receivable factoring include Invoice Factoring, Purchase Order Financing, Freight Bill Factoring, Construction Factoring, Government Contracts, and Medical Factoring. Industries include manufacturing, service, staffing, distribution, wholesale, communication, pharmaceutical, printing, telecommunication, and transportation companies and many others. Once a factoring company has purchased invoices the factor becomes a bookkeeping service and collection service for the business that frees up valuable time for the proprietor to concentrate on running the business. Factoring offers many options which a company can choose to meet its current business needs. Using the services of a factor, a business gains a valuable financial partner who can provide administration, working capital, business expertise, and financial business guidance. With a factor as a partner, a business is able to focus on developing, producing, and selling its products or services. About the Author: Carson Nash is president and CEO of Carson Nash Funding, Inc. Carson Nash Funding has provided funding sources for Factoring Accounts Receivable for over 21 years. For more information about how Factoring can improve your cash flow and help your business prosper, please visit our web site at http://www.carsonnash.com. Small Business Venture Capital

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