Consumer Receivables Factoring

If your company provides goods or services to consumers in the general population, you know that these industries can be lucrative. You also know that consumers often purchase items on credit, making it more difficult for you to collect on consumer receivable invoices in a timely manner.

What is Consumer Receivables Factoring?

Consumer receivable factoring can help bridge the gap between deliverance of goods and services and receipt of working capital. Through factoring (selling your outstanding invoices for a cash advance of up to 90%) you can eliminate cash flow concerns. With consumer receivable factoring, your company can collect working capital on invoices right away and a factor’s decision to advance funds is based more on your client’s creditworthiness than your own – so, unlike a traditional bank loan, if you have little credit history or bad credit, you can still receive cash without the stress of going into debt.

How Does it Work?

The factoring process is simple:

1. Contact Factor Finders for a brief phone consultation to make sure that your invoices are factorable. We will also listen to your business goals and what you’re hoping to accomplish with invoice factoring.
2. Once we have a good idea of what your business does, we’ll connect you with the perfect factoring company. The factor will give you a shortlist of documents needed as an application.
3. Once you are approved, forward a copy of the invoices you wish to factor to your Account Manager.
4. A cash advance will be deposited to your bank account within hours.
5. A small reserve is held by the factor, so once your client pays you the invoice amount, you will receive the reserve minus a factoring fee.

Additionally, when you sell your invoices, you also give away the work involved in billing and collecting from the client. Good cash flow allows you to pay your company or agency bills without delay, so you can take advantage of early-pay discounts and maintain good relationships with your suppliers. Consumer receivable factoring allows you to be flexible with terms – you won’t have to commit to a long-term arrangement. Selling your written-off accounts and seasoned portfolios can help you look ahead to future business opportunities!