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Factoring
Riverpoint Capital connects clients to factoring partners to provide funding by leveraging your receivables. Also known as accounts receivable financing, factoring loans are simple and efficient ways to increase cashflow without incurring debt. In essence, when a company uses accounts receivable factoring, they sell their currently open invoices to another company in exchange for cash up front. This way, the company isn’t waiting on customer payments, is no longer responsible for tracking down delinquent payees and has access to funds.
Riverpoint Capital is a partner between our clients and funding sources that offer accounts receivable factoring. Growing businesses or companies in need of an influx of cash are the most frequent types to take advantage of this financing option. In many cases, accounts receivable factoring is preferable to traditional bank financing because companies like those Riverpoint Capital work with are experienced in a wide range of businesses and know how best to recover unpaid invoices while letting the original companies owed off the hook.
How does Accounts Receivable Factoring Work?
It’s simple. Follow the steps below.
- You perform your business routines as normal.
- Instead of sending out invoices to individual companies, you send them to your accounts receivable financing partner.
- Your factoring partner sends you a same-day advance based on an agreed upon percentage of the invoice deposited directly into your account.
- Your factoring partner sends out the invoice to your customer and follows up as necessary. Once they receive the final invoice amount, it is refunded to you, minus a fee.
By using accounts receivable factoring, you can focus on what makes your business tick instead of worrying about smaller details. We will make sure your invoices are paid and that you receive the full amount owed. Additionally, your company will always have greater cash flow since we deposit a percentage of the invoice into your account immediately and factoring loans have a shorter approval window than traditional bank loans. It’s a win-win-win for everyone.
Riverpoint Capital has offices based in New York, NY and Hollywood, Florida. To learn more about factoring, contact us today.