Factoring
What is Factoring? Accounts Receivable Financing (Factoring) also known as “cash for receivables/invoice factoring)” 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 clienteles. One of the biggest advantages of factoring is that businesses get immediate cash (from 50-80% 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 specializes in providing working capital to the following industries:
- Staffing companies – unlimited payroll funding.
- Trucking companies - Freight bills, fuel cards.
- Distributors and Wholesalers
- Consulting companies
- Commercial construction companies
- Manufacturers and Suppliers
- Medical Working Capital Loans
Who Should Factor their Accounts Receivable?
- Small to medium sized companies across North America use factoring to increase cash flow.
- Companies who need to clean up their A/R and add cash to their Balance Sheet.
- Start-up companies with growth potential that cannot access capital from conventional bank sources.
- Companies who have had their bank lines reduced or eliminated and need to maintain cash flow.
- Companies in or recently emerged from bankruptcy.
- Merging and acquiring companies.
- Companies with the opportunity to grow quickly without the financial resources to make it happen.
- Companies with seasonal growth spikes.
- New Businesses that do not qualify for bank line of credit.
Equipment Leasing Made Easy! Absolutely No Application Fee!
-Start-up and Established Businesses with Previous Credit Problems Welcome-
