Alexa Certified - Nations Auto Transport

Understanding Factoring

Invoice Factoring Services

A MULTI FACETED CUSTOMER APPROACH

Solutions that can advance cash on your Trucking and Oil Field Service company’s invoices within 24 hours. Factoring, also known as “accounts receivable financing,” gives your company quick access to working capital. This allows you to meet your immediate cash flow needs.

Simply stated, Accounts Receivable Factoring, (AR) is where a third party funding source, the Factor, buys a company’s accounts receivable in exchange for the company receiving immediate cash. From an accounting view, the company has now replaced the current asset known as accounts receivable with cash. There is no effect on the balance sheet other than to re categorize current assets. Factoring does not increase a company’s debt, there is no equity created or given up, there is no mezzanine financing and no intrusive new management.

AR financing is done to expedite and improve a company’s cash flow. Factoring is usually done either as recourse or non-recourse factoring. Recourse Factoring means if the Factor is not paid back on the original invoice the Factor purchased, the Factor resells the invoice back to the original seller, (company). In some cases, the Factor may further require a notice of assignment be executed in favor of the Factor in order to notify the marketplace that the Factor has taken a security interest in that invoice and that the invoice is now to be paid by the buyer (debtor) direct to the Factor.

Keep it Simple

After you have completed the service and can invoice to your buyer, advances up to 97% of the invoice value can be provide via wire or low – cost ACH within 24 hours

  1. Speed to deal – understanding the marketplace means we can move fast
  2. Competitive rates
  3. Up to 97% advanced on a customer invoice.
  4. Easy application and set-up process.
  5. No limits to the amount of available funding.