An accounts receivable factoring company is where many businesses might seek financial assistance. Factoring has been around for decades and is often a simple solution for handling a variety of financial situations.
Basically speaking, factoring is a simple process. A business would sell existing, uncollected invoices to a third party (a "factor") for immediate access to working capital. Depending on the type of factoring agreement entered, collections on the factored invoices might remain as a responsibility of the business or it may become the responsibility of the factor.
Factoring allows a business that has made a sale and is waiting on payment to collect on the sale before the full collection period has passed.
AdvanceMe's Merchant Cash Advance is similar in some respects, but not a true form of factoring, so it offers some distinct benefits to qualified applicants. One of the greatest advantages of a Merchant Cash Advance is that is allows a business to cash-in now on its future credit and debit card sales. Factoring requires a sale to be made first, so the business has an outstanding, uncollected invoice to factor - a Merchant Cash Advance eliminates this restriction.
A Merchant Cash Advance, like factoring, is an appropriate alternative to a small business loan in many situations. Also, much like factoring, a Merchant Cash Advance is used by many businesses representing a variety of different industries.
For more information on What a Merchant Cash Advance is, click here.
