What is Factoring?
What is Factoring?
Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable invoices to a third party (factor) at a discount. A business will sometimes factor its receivable assets to meet its present and immediate cash needs.
So what is Factoring to a Trucker?
Factoring means unlimited capital and immediate cash flow for your business. No need to turn away business because of cash flow. Factoring with XFactors can help grow your sales. As your sales increase, more money becomes available to you. The faster you deliver, the faster you get paid.
Factoring is leveraging off your customer’s credit.
You don’t need to meet any of the credit criteria required by banks and other commercial lenders. If you have credit-worthy customers, you can factor with us, Under conventional methods, your company must wait for 30, 60, and sometimes 90 days to collect an invoice. By factoring with XFactors, you assign your freight bills to us and as soon as you deliver, we immediately pay you and we take care of all the freight bill paperwork.
Factoring Is Inexpensive
- How much is lost having to wait 30-60-90 days to get paid?
- What does it cost to run your office?
- What does it cost to accurately check the credit on your customers?
- XFactors will professionally handle all the office/paperwork from the time you deliver. XFactors will process and collect your invoices. This includes addressing envelopes, stuffing them, paying for postage, mailing them to your customers, posting invoices, depositing checks, and entering payments. Weekly, we will send to you by fax, email or postal mail: easy to read computerized reports. All of this is included in your factoring fee.
- What happens if your customer disappears without paying the invoice? Nothing happens to you when you have XFactors Non Recourse Factoring !