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What Is Invoice Factoring And How Can You Benefit?


August 31, 2017 ( Newswire) Your business depends on the quick turnaround of funds from customers in order maintain its growth. Consider all that you could do if you saw a return for every one of your services within 24 hours, as opposed to several weeks or at times months. With steady and consistent cash flow, a business can pay its bills and its employees quicker, reduce debt, and invest in the future. When a business uses invoice factoring, they typically receive 97% of the price for their invoices up front. A third-party then assumes the risk of tracking down customers for payment without collecting the interest rates that a bank would. It’s an alternative option to applying for a bank loan when you know you’re expecting funds that quite simply are taking too long to come in.

Factoring takes the responsibility off the client, as factoring companies will purchase the invoice out right - the money is not a loan. They will keep the 3% as a reserve until customers turn over their outstanding payments. It's important to note that this process is different from invoice financing or discounting - where clients are still responsible for liaising with their customers to secure returns.

Invoice factoring is used widely in many industries, particularly by trucking or freight companies as well as other B2B or B2C businesses whose customers can take anywhere between one to three months to pay outstanding charges. For these businesses, Accutrac Capital is a top factoring entity with three different tiers of service depending on your needs. Visit to peruse their options, the most popular of which is flat fee factoring, where for 1.59% of the invoice, the company will advance funds and take over retrieval of payment for up to 90 days. They have an alternate option for companies with customers they can rely on to pay within 10 days for only 0.49% of the invoice. For large fleets, they offer a line of credit for up to 97% of your accumulating accounts receivable. Fees are charged against your account balance only, at rates as low as 0.022% per day. All plans offer same day funding, a 90-day recourse, free credit reports and more.

Additionally, they can provide significant cash advance options on loads in transit (up to 50% for the value of your load), equipment financing for growing fleets, and they can give you fuel discounts and the lowest of currency exchange rates through their BulkBUY program.

Waiting to get paid is one of the biggest frustrations in business, and long payment cycles can produce significant hindrances to a company's ability to grow and expand. Why not improve cash flow and the speed at which your business operates, alleviating unnecessary stress and struggles with stagnancy? Choose the route of factoring by partnering with a third-party you can trust and receive your outstanding funds instantly. The simple application process also eliminates major hurdles that banks can create for start up operations. This alternative allows them to take advantage of immediate opportunities.


Jennifer Maller

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