–noun, plural accounts receivable. a claim against a debtor, carried on open account, usually limited to debts due from the sale of goods and services.
–noun Commerce. the business of purchasing and collecting accounts receivable or of advancing cash on the basis of accounts receivable.
Source: accounts receivable. Dictionary.com. Dictionary.com Unabridged (v 1.1). Random House, Inc. http://dictionary.reference.com/browse/accounts receivable (accessed: January 06, 2011).
What is “accounts receivable factoring”?
Factoring involves the purchase of the face value of your accounts receivables or invoices by a factoring company at a small discount in exchange for an immediate cash advance usually in the form of a wire transfer.
Factoring accounts receivables or “accounts receivable financing” as it is also known provides over a billion dollars in operational cash flow for companies each year.
Once only used by a less significant group of industries, Accounts Receivable Factoring is increasingly becoming a more popular option for entrepreneurial sized business who may have trouble securing loans from banks in today’s fast paced economy. As the banks step back Accounts Receivable Factoring is filling the financial void that has developed.
Why is “Accounts Receivable Factoring” important?
Essentially, the use of a commercial finance company to factor your invoices is an off balance sheet transaction. This means when you get beyond the need for financing you have no net term liability that needs to be paid off. Each purchase of an invoice by the factoring company, when paid by the customer is a completed business deal.
What makes Creative Capital Associates different?
Being an Accounts Receivable Factoring company for over a decade we know by focusing on what we do best, how to operate in this often risk adverse segment of commercial financing. This means for instance that our clients receive all the benefits of credit management with their customers, making sure they are not advancing credit on non-creditworthy sales.
Additionally, when it comes to accounts receivables factoring you want to move quickly. We can be purchasing your invoices for factoring usually within a week to ten days. Once you decide to move ahead, our staff will keep your account on the front burner as long as you are involved in our portfolio.
There are a variety of benefits to accounts receivables factoring that you can instantly learn about by continuing on into the site. Visit our e-learning center where you can fully understand commercial factoring. And keep in mind that we go beyond factoring invoices when it comes to your account. We provide access to our successful business acumen and cross strategic partnering with our other clients and connections.