Factoring, also known as Accounts Receivable Financing, is the real-time exchange of your receivables for cash.

The lender will evaluate your business to determine the percent of outstanding receivables they are willing to provide. The lender considers your business size, the quality of the outstanding receivables, and the likelihood of speedy repayment to calculate the percent of receivables they are willing to advance.

Factoring is a good option for business owners who may run into cash-flow management issues due to seasonality, logistical errors, damaged inventory, and to help grow your product offerings.