The Factoring Question
If you are thinking about account receivable financing or account receivable funding (also known as accounts receivable factoring) you probably have a lot of questions.
First: what is factoring?
Factoring is when you sell outstanding accounts receivable at a discount for cash. The reason this is attractive to many businesses is because it gives them the working capital to grow their business.
Rates can be between 80% and 90% of the outstanding invoice amounts. However, you may qualify for a better rate – be sure to submit your information in our quick app hybrid financing option.
One big advantage of doing business this way is that you do not have to worry about collections. Accounts receivable services included as part of financing is the collection of the outstanding invoices.
Trucking companies often benefit from these kinds of plans because they can use a combination of asset based factoring and account receivable financing to fund major expenses.