Non-recourse accounts receivable factoring is an effective financing method for small to medium businesses to access immediate working capital. AR factoring is the selling or assigning of your unpaid invoices to creditworthy clients to a factoring company. Once your invoices are verified and assigned to the factoring company, a factor will advance you up to 92% against your invoices. Non-recourse lowers risk in case of a client bankruptcy. Factoring allows businesses to skip the unreliability and drama of today’s bank loans and lack of lending.
There is a very good chance your business is growing and you are actively billing. Problems arise when you have to put out more material, more labor, more payroll expenses rather than are coming in. The fact is, you need cash now, not in 30-60-90 days. With working capital so precious and difficult to find, invoice factoring can help finance your business.
Unlike factoring which accelerates the cash from your invoices, PO Funding or Purchase Order Financing gives you the ability to have goods available for your clients before generating an invoice.
If you are a product reseller or distributor and need capital to deliver a large purchase order, then purchase order financing can be a solution to fuel your business. In addition, the purchase order financing will also deliver your orders and grow your business. PO financing enables you to make sales that exceed your current financial capabilities.