Companies of all sizes factor their invoices, from start-ups to large, publicly traded companies. Simply put, factoring is the sale of your company’s accounts receivable to a 3rd-party Factor in order to generate instant cash to continue operating your business. This cash is then used to cover your overhead costs: payroll, maintenance, equipment, taxes, fuel, etc. The Factor then bills your customer for the work you completed. Your customer is instructed to pay the Factor instead of you. Once your customer pays the Factor, the invoice is closed.
WHY BUSINESSES FACTOR
There are many different types of factoring programs and choosing the correct one for your business is an important decision.
Conventional borrowing is difficult to secure, especially for new or rapidly expanding businesses. Factoring does not create debt or require additional collateral and can generate cash flow quickly. With the TAFS App, clients can be funded within 1 hour of submitting an invoice. With a traditional loan you will wait a lot longer for your money. Why wait when you can get paid today?