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What is Invoice Factoring?
There are many ways to maintain a positive
cash flow when
growing your business and dealing with accounts receivable
issues. One popular way to increase cash flow is factoring.
Factoring (also known as Accounts Receivable Financing) is
the practice of selling your accounts receivable (invoices)
at a discount to another company. You get the money from the
company that you sold your accounts receivable to and they
become responsible for collecting on the invoices. The
reason many businesses make this move is to ensure the
continuous flow of cash to the business. Essentially,
businesses who use factoring are focusing on having most of
the money now rather than all of it later. It can take time
to collect on an invoice, so when a company finances its
accounts receivable, they are getting their money faster
and without the hassle of the collection process. With
small businesses, it is even more important to free up working
capital through factoring. The money can
be invested into new equipment, used to pay bills, or used
toward payroll. Of course, the alternative is to chase the
customer for the invoice payment and defer everything else
while the money is tied up in the collection process. In
order to fully understand factoring, you should be familiar
with the service: You may consider the following ideas so
that you may have a better understanding of factoring. It
could be best option for your business.
Factoring Company for Houston Businesses
Do you sell products or services on credit term to
businesses in Houston Texas? At Charter Capital, we make
factoring simple to obtain, with minimal
requirements, and usually can have a decision the same day. If
your Houston-based company sells to other businesses on
credit terms, then your company may qualify for factoring.
After you have been approved and all documentation is
complete, we typically offer same-day funding.
Factoring companies like Charter Capital provide financing used by
businesses to convert sales on credit terms to cash flow. The receivables are
secured as collateral and the
business may draw cash against the eligible accounts
receivable at any time. Accounts receivable financing, also
know as Factoring is not a loan, so it is not a debt to your business.
Factoring accounts receivable is quickly becoming the preferred
financial tool for obtaining flexible working capital for
small to medium size businesses.
Houston Businesses benefit by Factoring
By factoring, many business owners realize that they
don't have to borrow
money from a bank in order to get the financing they need.
Factoring accounts receivable considered a purchase of the
receivables at a discount and not a loan. This gives the
company immediate cash flow secured
by the outstanding receivables. With Charter Capital,
this is done without going through
huge amounts of paper work and waiting weeks for a decision.
Charter Capital specializes in evaluating accounts
receivable and can make a prompt approval decision. The
credit is determined by the financial strength of the
business' customer (Buyer or Account debtor), not the client (The
seller of the invoices/receivables). Our approval process is
simple and quick, enabling our clients
to acquire funds within 24 hours.
Houston Businesses Qualify for Accounts Receivable
Financing
Houston Texas businesses can qualify for factoring on accounts
receivable where credit terms are offered to credit worthy
businesses. Many of our clients are fast growing companies
whose past earnings and sales histories can hinder their
ability to attain traditional bank financing. Charter
Capital can accommodate
start-up operations with no financial base to rely upon or
companies with seasonal or uneven sales patterns.
Industries in Houston Texas That Qualify for Invoice
Factoring
Accounts receivable financing is available to all
industries that provide products or services to
other businesses. The sale must be "final sale"
and have
no disputes on invoices that will be considered for funding. The
product or service must be completely delivered in order for
an invoice to be eligible for factoring. Any industry that
meets this criteria is a candidate for factoring. Please call 1-877-960-1818 for
more details and Request a
Proposal today.
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