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Supplier: AR Cash Flow

Streamline your cash flow with factoring by turning your customers into COD payers.

Price Guide: POA

Factoring is primarily used for growing businesses and does not involve debt. In a nutshell factoring works as follows:

The supplier delivers finished products or performs services to its customer (who usually takes 30-60 days to pay).
The supplier then sends the invoice to the factoring company for instant payment.
The factoring provider then gives the supplier the money for the invoice straight away (usually up to 80% of the face value).
The factoring company takes that invoice and hands it to the supplier’s customer.
The customer then pays the factoring company.
The factoring company then pays the supplier the balance of the invoice less a small fee for providing the service.

Usually, the only security the factoring company has is the invoice.