What is factoring?
Accounts Receivable Factoring, sometimes called Invoice Factoring, is an alternative form of financing for your business. It involves selling your business's accounts receivable invoices to a third party at a discount in exchange for immediate cash.
Alternative financing companies will pay 80-90% (sometimes more) of the invoice amount usually within 24 hours of your business delivering its product or service to a qualified customer. Accutrac Capital, a factoring company, provides same day funding paying up to cash advance upon verifying delivery. Your business receives its cash upfront and Accutrac waits to be paid by the customer (usually between 30 to 90 days). Upon receiving payment from the customer, the remaining balance minus a factoring fee, is paid to your business.