AR Factoring or invoice factoring is a method of financing that is popular among manufacturing and transport based businesses. Basically, any business that is required to wait +30 days for invoices to be paid out.
When a job is completed, most small business owners require payment as soon as possible.
When dealing with larger companies like Walmart or Sobeys (who typically payout 45 days after receiving product) it puts a lot of stress on the company to fulfill its future orders after completing a larger request from one of these large chains.
This is why we have programs that entitle business owners to quick and affordable financing through their secured assets (outstanding invoices to other corporations)
If a company has $500,000.00 in outstanding invoices, they could be entitled to as much as 90% of the value of these invoices, in one lump sum payment.
When the outstanding invoice is paid, the remaining balance of the invoice is given back to the owner of the invoice, minus any interest and fees accrued during the timeframe the funds were needed.