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Got a question? Need some advice? Give us a ring. 800.705.1500
eCapital.com
Title 1
TITLE 2
Unlike
traditional
ABLs,
factoring
does not
create debt
because
it is not a
loan.
Companies of all types are turning to accounts receivable financing (AKA
factoring) to gain access to a steady cash flow for their business. Sometimes
it can be difficult to stay afloat when you’re dealing with daily business
expenses and demands. Or maybe your company’s business is steady but
you’re still looking for a way to increase cash flow for seasonal demand.
Businesses of all success levels can benefit from factoring services.
Traditional bank loans can take months to complete, and sometimes you
need cash NOW. This is where invoice factoring services can come in handy.
In fact, many businesses find factoring to be an effective financial solution.
Factoring delivers cash fast to allow you to get back on the road.
8 accounts receivable financing facts you need to know:
1	 No debt created. Unlike traditional ABLs (Asset Based Lending), 	
	 factoring does not create debt because it is not a loan. Since 		
	 a factoring company is purchasing your invoices and paying you
	 on those, it creates a more attractive balance sheet and 		
	 strengthens your financial circumstances.
2	 Start-ups qualify. You have to jump through a lot of large and 	
	 difficult hoops to qualify for a bank loan as a start-up company. 	
	 Some banks won’t even lend to start-ups. Since factoring is based 	
	 on invoices, start-ups can easily qualify, allowing you to get to 	
	 business quickly and easily.
3	 Save money and time on invoice processing. Once you begin 	
	 factoring your invoices, your factoring company starts handling 	
	 most of the invoicing work, which saves your company money 	
	 and helps increase productivity.
Factoring (fak-ter-ing):
The sale of a company’s
accounts receivable invoices
to a factor to obtain working
capital; this is also known as
receivables factoring, invoice
factoring, bill factoring,
accounts receivable factoring,
accounts receivable funding
and invoice discounting. It
is an popular method of
financing used worldwide
to help all types and size of
companies.
8 accounts receivable financing facts
YOU NEED TO KNOW
O1213
Got a question? Need some advice? Give us a ring. 800.705.1500
eCapital.com
Who is eCapital
anyway? We’re in the
business of buying your
accounts receivable to give
you fast cash and financial
freedom.
Connect with us and
find out more.
Title 1
TITLE 2
With factoring,
the increased
working
capital
provides you
the means to
pay your bills
and vendors
on time, which
positively
affects your
credit score.
4	 Factoring is flexible. When you factor, you control which 		
	 customers you want to factor, allowing you to secure operating 	
	 cash that is flexible and meets your business needs.
5	 Industry knowledge and savings programs. Factoring companies 	
	 generally have specific industry knowledge and understand the 	
	 needs and challenges of your business. They can also provide 	
	 helpful services and programs that help you save money on 		
	 business expenses.
6	 Quick, painless account setup. It generally takes a few days
	 and minimal paperwork to set up a factoring account. You’re not 	
	 going to have to wait weeks for an underwriting process to see 	
	 your money!
7	 Professional collection services. Factoring companies understand 	
	 the importance of professionalism in business relationships. They
	 treat all your debtors as if they are your biggest and best 		
	 customers, ensuring your business relationship remains secure.
8	 Improve your credit. With factoring, the increased working 		
	 capital provides you the means to pay your bills and vendors on 	
	 time, which positively affects your credit score.
Need more reasons to factor? Contact one of our friendly factoring
consultants at 800.705.1500 for a no-obligation chat!
8 accounts receivable financing facts
YOU NEED TO KNOW

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8 accounts receivable financing facts you need to know

  • 1. Got a question? Need some advice? Give us a ring. 800.705.1500 eCapital.com Title 1 TITLE 2 Unlike traditional ABLs, factoring does not create debt because it is not a loan. Companies of all types are turning to accounts receivable financing (AKA factoring) to gain access to a steady cash flow for their business. Sometimes it can be difficult to stay afloat when you’re dealing with daily business expenses and demands. Or maybe your company’s business is steady but you’re still looking for a way to increase cash flow for seasonal demand. Businesses of all success levels can benefit from factoring services. Traditional bank loans can take months to complete, and sometimes you need cash NOW. This is where invoice factoring services can come in handy. In fact, many businesses find factoring to be an effective financial solution. Factoring delivers cash fast to allow you to get back on the road. 8 accounts receivable financing facts you need to know: 1 No debt created. Unlike traditional ABLs (Asset Based Lending), factoring does not create debt because it is not a loan. Since a factoring company is purchasing your invoices and paying you on those, it creates a more attractive balance sheet and strengthens your financial circumstances. 2 Start-ups qualify. You have to jump through a lot of large and difficult hoops to qualify for a bank loan as a start-up company. Some banks won’t even lend to start-ups. Since factoring is based on invoices, start-ups can easily qualify, allowing you to get to business quickly and easily. 3 Save money and time on invoice processing. Once you begin factoring your invoices, your factoring company starts handling most of the invoicing work, which saves your company money and helps increase productivity. Factoring (fak-ter-ing): The sale of a company’s accounts receivable invoices to a factor to obtain working capital; this is also known as receivables factoring, invoice factoring, bill factoring, accounts receivable factoring, accounts receivable funding and invoice discounting. It is an popular method of financing used worldwide to help all types and size of companies. 8 accounts receivable financing facts YOU NEED TO KNOW O1213
  • 2. Got a question? Need some advice? Give us a ring. 800.705.1500 eCapital.com Who is eCapital anyway? We’re in the business of buying your accounts receivable to give you fast cash and financial freedom. Connect with us and find out more. Title 1 TITLE 2 With factoring, the increased working capital provides you the means to pay your bills and vendors on time, which positively affects your credit score. 4 Factoring is flexible. When you factor, you control which customers you want to factor, allowing you to secure operating cash that is flexible and meets your business needs. 5 Industry knowledge and savings programs. Factoring companies generally have specific industry knowledge and understand the needs and challenges of your business. They can also provide helpful services and programs that help you save money on business expenses. 6 Quick, painless account setup. It generally takes a few days and minimal paperwork to set up a factoring account. You’re not going to have to wait weeks for an underwriting process to see your money! 7 Professional collection services. Factoring companies understand the importance of professionalism in business relationships. They treat all your debtors as if they are your biggest and best customers, ensuring your business relationship remains secure. 8 Improve your credit. With factoring, the increased working capital provides you the means to pay your bills and vendors on time, which positively affects your credit score. Need more reasons to factor? Contact one of our friendly factoring consultants at 800.705.1500 for a no-obligation chat! 8 accounts receivable financing facts YOU NEED TO KNOW