Affiliated Funding Corporation has been in business for 23 years, and is one of the industry leaders in providing accounts receivable financing, invoice factoring, inventory financing and purchase order financing.
Factoring (accounts receivable financing, invoice factoring, inventory financing, purchase order financing) is the process by which you sell your accounts receivable, or invoices, to a company specializing in factoring. With factoring, you incur no debt, make no payments, and is not a loan. In order to qualify for factoring (or accounts receivable financing, or invoice factoring, inventory financing, purchase order financing), you only need to be in the business of selling products or services, on credit, to another credit worthy business or government entity.
Generally, your business grants terms to the customer, and you wait to get paid. Meanwhile, sales orders come in, payroll has to be met, your business has expenses that need to be paid, and you may lose an opportunity to get discounts from your vendors---all the while waiting on your customer to pay you on their terms and policies.
This is when factoring (accounts receivable financing, invoice factoring, inventory financing, purchase order financing) will solve the problem. There is an opportunity cost associated with every decision a business owner makes. That cost every owner should ask themselves is what will it cost if I have to turn business away because I am waiting to be paid on my invoices?
When your business experiences rapid growth, and out strips its cash flow, bank loans are not necessarily the answer. Factoring is. With Factoring (or accounts receivable financing, invoice factoring, inventory financing, purchase order financing), you are not limited to the amount of cash available to you. You are only limited by the number of sales your business experiences. Unlike banks, factors do not look at the strength of your financial statements or operating history. If you have had hiccups, or just landed large orders and are wondering how you will fulfill them, factoring (or accounts receivable financing, invoice factoring, Inventory financing, purchase order financing) is the solution.
