Invoice Factoring
Securing cash flow is one of the most important parts of your business’s success. With our Invoice Factoring, you will be able to plan ahead and get immediate access to funds from your receivables instead of you having to wait for payment from your client.When is the best time to approach EML, if we want to factor a future invoice or purchase order?
We usually recommend that you contact us several weeks before factoring a future purchase order. Once we set you up with an account, you will have a variety of options in addition to factoring like opening a line of credit for your business and more.
What is Invoice Factoring?
Invoice Factoring is a transaction where the business sells its accounts receivables or invoices to a factor at a discount. This is done to meet cash needs and sometimes to reduce credit risk. Accounts receivable financing is a term that is more accurate to refer the form of asset-based lending using receivables as collateral.
How is Invoice Factoring Different from a Bank Loan?
Factoring is different from borrowing because the accounts receivables are actually sold instead of just being offered as the collateral. The final result is that your company can then convert its receivable into real cash to operate your business, this way you don't have to wait 30 or 60 or even 90 days time until the customer pays. This process puts the waiting on the factoring company and allows you the time to really concentrate on doing business. We make sure that you receive the cash you need when you need it, allowing you to run your business.
Why Invoice Factoring?
Invoice factoring is a great option for companies that need money quickly and cannot obtain a bank loan. There are many different names for a Business Factoring: Receivables Factoring, Invoice Discounting, Invoice Factoring, and Debtor Financing are all commonly used terms. Non-recourse factoring is also something provided by the better factoring companies which means that they will protect you in the case of your client going insolvent while the transaction is still going on.
Factoring is a great way for companies to infuse their business with cash without taking on additional burdens and debt. Receivable Finance is a great option for most industries, including but not limited to trucking, staffing, distributors, and importers.