Factoring is a financial transaction whereby your company sells its accounts receivable in exchange for immediate liquidity. Through factoring you will enable your company to reduce the costs associated with bad credit and lengthy credit evaluations. Factoring eliminates cash flow imbalances due to prolonged payment terms.

The service initiates when a factoring company buys invoices by paying cash, and holds the invoices for collection until these become due. As soon as a company completes a service or delivers the merchandise to his/her customer, the invoice is sent to the factoring company for funding. The factoring company will then provide an advance payment of 70 to 90 percent of the face value of the invoice, via wire transfer to the client's bank account. Once full payment is received from our clients’ customer (debtor), the factoring company returns the invoice payment balance minus the factoring fees to your company.