Accounts Receivable Factoring Services:
Fluctuating production costs, late customer payments, economic slowdowns, and increases in payroll can all present serious challenges to small businesses and start-up companies. In the past, entrepreneurs sought reliable small business financing through small business loans from banks. However, times have changed, and banks are no longer as stable as they once were. Additionally, small business loans have become very hard for small businesses and start-up companies to obtain as they are costly, require extensive collateral, and are only available to those applicants with outstanding personal and business credit.
Accounts receivable factoring services are different. Sometimes referred to as "invoice factoring," this form of small business financing does not create debt, nor is it dependent on business owners' credit history or collateral. Factoring approvals are based on the creditworthiness of a company's customers and the value of their associated invoices, making invoice factoring ideal for start-ups and small businesses. Online accounts receivable factoring company Fast A/R Funding explains the process on its website, www.fastarfunding.com: "Accounts receivable factoring. is a relatively simple process. The factoring company purchases the accounts receivable from a small business, providing funds up front to that company. The small business then has the capital needed to maintain workflow while the factor collects on the purchased invoices."
When choosing an online accounts receivable factoring company to provide small business financing, there are several items to consider. Online factoring companies vary significantly in what they offer and how much they charge, so it is important to take the time to choose wisely.
First, it is important to understand that "accounts receivable factoring" and "invoice factoring" refer to the same process of small business financing. In this process (sometimes simply called "factoring"), the factoring company purchases its client's outstanding invoices at a discount, provides funds to the client in a short time period, and then helps collect payment from the client's customer(s).
The most reliable online invoice factoring companies are affiliated with industry protection organizations such as Factors Against Fraud and the International Factoring Association. One such company is accounts receivable factoring service provider Fast A/R Funding. Their website, www.fastarfunding.com, clearly indicates their association with the above-named organizations and promotes their use of enhanced website security measures through VeriSign and GoDaddy, both industry leaders in online transaction and ecommerce security. These are all key items to look for in an online invoice factoring company.
As well, when choosing an accounts receivable factoring company online, it is important to be aware of hidden charges or upfront fees. Reputable companies typically offer invoice factoring services with no set-up charges for new clients and no upfront costs; essentially, the better firms will not charge their clients anything until an invoice is actually factored.
For more information on choosing an online accounts receivable factoring company, visit www.fastarfunding.com.