Factoring is the discounting of account receivables. It enables 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 in exchange for immediate cash, and holds the invoices for collection until the invoices become due. As soon as a client completes a service or delivers the merchandise to his/her customer, the invoice is sent to the factor for funding. The factor will then provide an advance payment of 75 to 85 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 factor returns the invoice payment balance minus the factoring fees.