Receivables factoring

Some commercial banks and a finance company provide a service known as factoring. This is a short-term working capital financing technique in which the company actually sells its accounts receivable. Under a factoring arrangement, a finance company agrees to take over a company’s accounts receivable collections and keep the money from those collections in exchange for an immediate cash payment to the company. Receivables factoring can improve cash flow, expand your business, and pay off debt.


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