Turning Receivables Into Cash Since 1998
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Advantages and FAQ’s: Accounts Receivable Factoring

Advantages and FAQ’s: Accounts Receivable Factoring

  • Immediate access to cash: AR Factoring typically gets you access to working capital as fast as 24 hours after initial account setup. It can help lead the growth of your business when you need it so you don’t have to wait for the terms on your receivables.
  • Frees up time: When you hire an AR factoring company, it means that you no longer have to follow up with your customers on the terms of the invoice because the factoring company monitors collections of receivables. Getting a quote is also less hassle than a loan so it means less time filling out paperwork.
  • Great alternative to a loan: Loans show up as debt on your balance sheet and can reflect poorly on projections, AR factoring does not. Factoring does not set limits on the amount of financing, other thank the amount of your sales. There are no restrictions on the use of funds.
  • Credit is based on your clients: Credit is based on your company’s sales and creditworthiness of your customers.

Accounts Receivable Factoring in 6 Easy Steps

  1. Deliver on product or service for your customer and send them an invoice.
  2. Factoring company verifies the invoice and buys it from you.
  3. Factoring company advances 80-90% of the value of the invoice and then waits for payment.
  4. Factoring company monitors the invoice
  5. Invoice is paid and factoring company collects and takes the pressure off of you.
  6. The remaining 10-20% of the invoice is released, minus the service payment.

Accounts Receivable Factoring Infographic

Diversified Funding Services was founded in 1998 by Mark Little with the mission to provide businesses the opportunity to obtain critically needed cash flow for their companies with Account Receivables financing, traditionally known as Factoring.

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Diversified Funding Services, Inc
125 Habersham Drive / Suite C
Fayetteville, GA 30214
Toll Free: (888) 603-0055
Phone: (770) 603-0055
Fax: (770) 603-9823