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Accounts Receivable Financing (Factoring)

What is Factoring?

Accounts Receivable Financing (or Factoring ) is the process of turning your accounts receivables into cash! It is inevitably the sale of accounts receivables at a discount in exchange for immediate cash. This immediate cash can then be used as a re-investment into the company so that it has a better opportunity to grow and expand. Small businesses often have difficulty expanding because they often don’t have the working capital to grow. By factoring, it allows companies the financial freedom that is not regularly available because of cash flow problems.

Whether you need the money to pay off existing bills or to purchase new inventory, factoring allows you the flexibility to spend the money on how you see fit. When businesses need money they often go to the bank first, if the bank says no, it is often because the business did not fit their specific criteria. But at Able Business Credit, our criteria are different then the banks and that is why it allows us to offer alternative financing at great rates.

Factoring is not a loan! It is an alternative financing solution where accounts receivables are sold in exchange for immediate cash. An effective service where your business does not incur any debt.

Its common practice that when you need money, you go to the banks. But that can often be a headache trying to get money because of a weak or non-existent track record. Factoring is an alternative financing method that gives businesses flexibility and opportunity, by turning accounts receivables into quick cash. By knowing the ins and outs of your business, we can customize a program that is tailored to your specific business.

One thing that makes factoring different is that you never incur any debt! You are instead selling your financial asset in exchange for cash!

Let us show you how financing accounts recievable can be a terrific alternative funding solution for you to get working capital fast!


Get Started Today! Rates start as low as 0.75%. Click Here for more information contact us by email info@ablebusinesscredit.com or phone at 1 (855) 800-5525. We help businesses across Canada get the financing they need!

Toronto - Quebec - Vancouver - Calgary - Winnipeg - Ottawa - Edmonton - Regina


Is Factoring Available for my Business?

Receivable Factoring is strongly recommended for businesses that have strong sales numbers, but have cash flow problems because of payment terms and increases in business. While cash is sitting dormant in your accounts receivable, you need money to pay payables and other operational costs involved with running a business. Accounts Receivable Finance allows you to access the bulk of these funds and make payments so the business can remain operational.

What About Invoice Discounting?

Invoice discounting is an alternative financing solution that allows businesses to free up cash flow and working capital. While the process is often confused with accounts receivable financing, ownership of the receivable will remain with the borrower and not “sold” to a lender. The receivable is instead used as collateral and the amount that is advanced is based on the credibility of the payee.

Generally speaking, this is a popular method for businesses who do not want their customers to know that they are factoring. By using invoice discounting, clients are given the ability to utilize our services without changing the way a company operates. Your business will continue to function in the same manner; the only difference is that reports will need to be generated so that accounts can be monitored by the lender.

Many of our clients use our services and understand many of the benefits which include: improved cash flow, you only pay interest on the funds that you borrow, and it can be set up so that your customers do not know that they are borrowing against their receivables. We provide financing solutions for businesses that need to bridge the gap between invoicing and receiving payment and for businesses that are growing beyond their financial capacity.

Not sure if invoice discounting or factoring is better for your business? Contact us and we can provide you more information on both of the services and which is a better fit for your company.

Are you looking at financing accounts recievable? If you’d like to know more about Accounts Receivable Financing and Receivable Factoring, send us an email or give one of our industry experts a call at 1-855-800-5525.