How It Works
Factoring is a form of accounts receivable financing whereby individual invoices are “sold and assigned” at a slight discount to the finance company or “factor”. The factor advances a portion of the invoice value (usually 80-90%) then collects payment on the invoice from the customer.
Since factoring relies on the collectability of the accounts, it is much easier for small or distressed companies to qualify for this type of financing. The client gets the added benefit of credit and collection management services and optional credit insurance.
Most businesses will qualify for a factoring loan. Factoring loans rely on assets like unpaid “invoices” to be funded. Credit risk businesses as well as young businesses are normally accepted with ease for a factoring loan.
How nFuse Capital Works
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