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What is Factoring? FACTORING is the sale of a company's ‘accounts receivable’ or invoices to an investor. This sale then provides the company with an infusion of cash, literally overnight. This allows the company to run on a COD basis, while extending credit terms to customers. In other words, factoring is a non-debt solution to a cash need. Funds are made available based on the credit worthiness of your customers, and the volume of valid invoices with those customers, NOT on YOUR own credit worthiness. The more business you produce, the more money is made available. This gives businesses with little (or tarnished) credit history quick access to cash. Long-term contracts are not required. The business owner decides when and how much to factor. Credit reporting and collection services are often provided by United Freight Factors, freeing the business owner from these chores, allowing him/her to do what he/she does best: produce, sell and deliver the goods and/or services of the company. The process is simple. You submit an invoice to United Freight Factors for approval. Upon verification of the invoice, we make funds available to you. PURCHASE ORDER FINANCING is provided to the business that produces goods or provides services "in house" but are having a difficult time filling orders because of larger-than-anticipated-demands. Financing will then be provided based on the amount needed to produce, insure and ship – not on the amount of the invoice. Costs, in this case, tend to be higher than with factoring and advances tend to be lower, as financing carries a larger risk to the investor.  800-670-1404 |
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