Any business that provides a product or service to other creditworthy businesses can be a candidate for accounts receivable factoring. It also has to be constrained by their everyday cash flow situation.
Nevertheless, your business may need: cash to cover payroll, working capital to fuel growth, help with cash flow problems, and help because of bank turn downs or refusal to extend current lines, new equipment to grow.
 Sales alone do not measure the productivity of a company. They may be increasing, but a company may have to wait weeks or even months for payment. But during that time, your company cannot buy materials for more orders, meet payroll, or other basic operating costs. Accounts Receivable Funding provided through Diversified Funding Services is the right solution in this case.
Factoring or Accounts Receivable Funding has been existed for some decades. Nowadays, almost any-sized business that extends credit to other businesses for goods or services can enjoy the many profits of Accounts Receivable Funding.
It is the exchange of creditworthy commercial accounts receivable for an immediate injection of working capital. It may be bought with an advance of anywhere between 75 to 90% of the net invoice amount, but only when an invoice is generated. You will receive the reserve portion minus a nominal servicing fee when your customer pays the invoice.
Advantages of Factoring
* The first one is that initial funding is usually available between 5-7 business days upon receipt of completed formal agreements. Then all future advances are funded within 24 hours.
* Factoring does not create a financial liability on your company's balance sheet. It means you don't need collateral any more.
* As for the sum of funding available to you, it is only limited by the creditworthiness of your customers.
* Factoring concentrates on the creditworthiness of your clients.
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