Factoring - More than Math

Factoring is more than a math term. It’s a solution to one of business’s most common problems: cash flow. So whether your business needs working capital to expand or to cover operating costs, factoring can help your business reach its goals.

What Is Factoring?

Factoring is when your business sells its invoices to a third party for a discounted rate. The third party then assumes all liability of non-payment. This means that you’re not liable if you don’t get paid, the lender is responsible. Rather than wait for weeks, or even months for slow paying customers you can obtain working capital by selling your invoices to J D Factors at an agreed upon rate.

Factoring gives your business predictable income and a steady flow of working capital, making it easier to invest in growing your business.

J D Factors provides non-recourse factoring. That means that if an invoice is not paid for credit reasons then you are not liable. JD Factors assumes the risk.

How Does Factoring Work?

After you have set up your account with J D Factors the process is simple:

1.       Send us your invoices

2.       We verify the invoices and send them to your customers

3.       You receive cash in your account within twenty-four hours.

You can submit these invoices anytime through your online account. The ease and simplicity of an online system offers multiple benefits to entrepreneurs or other business owners who may keep irregular hours.

What Are the Benefits of Factoring?

Here are some of the ways that factoring can give your business an advantage:

1. Speed, Flexibility, and Control

Rather than depending on potentially slow paying customers your business can receive an immediate injection of cash. The main advantages this speed affords are control and flexibility.

Factoring puts you in control of your business by circumventing more unpredictable streams of working capital. Customers will not always pay promptly, and bank loans take time to process. In a worst-case scenario, if your customer goes bankrupt or has credit issues they may never be able to pay you the money they owe. With factoring, companies like J D Factors assume all the liability up front, so you don’t have to worry if your customer doesn’t come through with payment.

J D Factors can help bring certitude to your long-term strategy and get you the capital you need to seize opportunities that present themselves.

2. No Banks

By choosing factoring you can also avoid incurring debt. Loans can be an effective tool when growing your business, but they are not without risk. They can also prove expensive.

That is of course if you are approved for a loan. Many small or new businesses find qualifying for a loan difficult, but factoring is an effective alternative for growing businesses.

3. Outsource Your Collections

Businesses of all sizes, from Fortune 500 companies down to sole proprietors have used factoring. One reason is because collecting payment from customers can drain resources.

With factoring, your business will not have to sink time and personnel on collecting payment from a job you just completed. We collect on the invoices and assume all liability if the invoices aren’t paid so you can look ahead to your next project, to hiring new personnel, or to growing your business.

Build a partnership

Partnering with J D Factors gives you greater control over the future of your business by regulating your cash flow. Factoring simplifies the collections process so that you can look forward and focus your time, money, energy, and manpower, on the next task. Contact us and let’s talk about how factoring can work for you.