What is Account Receivable Factoring?

Factoring, also known as “cash for receivables,” is a transaction whereby a business sells its account receivables (invoices) at a discount. Factoring is not a loan and is not based on the credit history or credit worthiness of the business. It is based, instead, on the value of the invoices and the credit worthiness of the businesses’ clients. One of the biggest advantages of factoring is that businesses get immediate cash (from 70 -95% of the face value of the invoices) within 24-48 hours. Factoring accelerates cash flow by eliminating the time lag between the delivery of goods or the performance of a service and the payment for it. Most businesses have to pay their expenses before they can collect their receivables, disrupting cash flow.

Ashton Capital Group, LLC can help you determine if factoring your company’s accounts receivable is the right option for you. Once you have come to a decision to factor, Ashton Capital Group, LLC will package the transaction in accordance with the factors requirements. The
Whether your company is in the start-up phase or you have out grown your cash flow, Ashton Capital Group can help factor your invoices and get the cash you need.



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: