A way to turn receivables into immediate cash - while managing risk and working capital.
Get in TouchMost companies don't have a revenue problem - they have a timing problem.
You sell today, but you don't get paid for 30, 60, or even 90 days.
Factoring is one way companies bridge that gap by converting receivables into immediate cash.
Factoring is a financial arrangement where a company sells its accounts receivable to a third party (a factor) at a discount in exchange for immediate cash.
Instead of waiting for customers to pay, the company receives a large portion of the invoice value upfront.
When the customer pays, the remaining balance - minus fees - is settled.
It's a way to accelerate cash flow by monetizing receivables.
Company generates an invoice
Invoice is sold to a factoring provider
Company receives advance (70–90%)
Customer pays the factor
Remaining balance released minus fees
Factoring is less about risk transfer and more about cash flow acceleration.
Many companies use factoring not because they have a problem - but because they're growing.
Immediate access to cash
Flexible financing tied to sales volume
Less reliance on traditional bank lending
Can scale with growth
May include collections support
Some risk protection available
Factoring solves for timing. Credit insurance solves for risk.
Credit insurance may be a better fit when:
Many companies don't choose one or the other - they use both.
Protects the receivables
Monetizes them
Provide both liquidity and protection
Protection strengthens the asset. Financing unlocks its value.
They need immediate cash to purchase inventory and hire staff while waiting for customer payments.
Key customers represent significant exposure and need protection against default.
The combination of factoring and credit insurance makes receivables more bankable.
Every situation is different. A quick review can help determine the right approach.
Get a Free Risk ReviewUnderstanding your options is the first step.