Factoring
Finance
Can Improve
Your Cash Flow

Accord—A Factor in Your Success

Invoice factoring is the purchase of a company’s outstanding invoices, where the invoice financing company advances 75-90% of the face value of the total invoice amount once the product or service is delivered to the customer.

It’s like a real-time line of credit for immediate cash flow. The reserve, the 10-25%, is given to the company when their customer pays the invoice.

Accounts receivable factoring is a great way to accelerate cash flow for your business and save you the management time typically tied up with credit analysis and collections. Accord can advance up to 90% of the face value of your invoices, allowing your company to cover its short-term cash needs without waiting weeks or months for customer payments.

Small and medium-sized businesses often struggle to build up their cash balance, especially when a company sells on terms, which can strain time and resources during the collections process.

If your company is growing quickly or facing challenges, a low cash flow can lead to a range of issues. When cash is tight or collecting your accounts receivable is an issue, factoring can be the fast funding solution you need.

Factoring is an effective working capital solution when your business:

  • Doesn’t qualify for a conventional business loans, such as a bank loan
  • Needs funds quickly to grow and expand
  • Is managing a challenging transition
  • Is constantly negotiating with customers and suppliers to fill gaps in the cash flow cycle
  • Has large customer concentrations
  • Experiences challenging seasonal demands
  • Wants to avoid asking customers to pay early

Do these problems sound familiar?

Factoring your accounts receivable may be the answer. Whether you are a manufacturer, wholesaler, distributor, professional services company, importer or exporter and need from $500,000 up to $20 million, our factoring services can help you thrive.

You can start with factoring as little as $500,000 and grow this factoring facility up to $20 million along with the growth of your eligible receivables.

Factoring allows you to:

  • Access funds with a flexible facility and without restrictive covenants
  • Grow at your pace with a credit line that grows with your sales
  • Extend payment terms to your good customers
  • Thrive even with large customer concentrations
  • Take advantage of discounts and special buys offered by your suppliers
  • Focus on your business, not on chasing your customers to pay on time
  • Finance your insured foreign accounts receivable

Accord focuses on the credit quality of your customers instead of the company’s financial history. We fund based on the value of your accounts receivable and not on prior profitability or the strength of the balance sheet.

When factoring, we purchase your accounts receivable and immediately advance up to 90% of the money owed by your eligible customers. With cash in hand, you can get back to running your business. Once we receive payment from your customers, we send you the remaining balance, the reserve, which is the original 10% to 25% that was withheld from initial funding. Our factoring fee is taken from the initial funding of the transaction, so you can expect to receive the full reserve once your customer pays for your goods or services.

Along with financial flexibility, factoring relieves you of the time spent on customer credit and collections, allowing your team to focus on strengthening key relationships and growing sales.

Accord is a client-focused and technology-driven finance company, and a longstanding member of the International Factoring Association. We contribute to the invoice factoring community through frequent presentations on factoring, due diligence, and industry best practices.

Factoring small and medium-sized companies has been the core of our business since 1978. Our experienced team has worked with companies in virtually every industry, which puts us in a position to fully understand the challenges you face and can craft a solution that’s best for you.

With Accord as your financial company, you will benefit from our industry-leading factoring software that provides you with secure, real-time access to your account information and activity. You will also benefit from our effective account receivable collection service and professional credit guidance.

Frequently Asked Questions

Accounts receivable factoring is financial transaction by which a business sells its accounts receivable to a third-party lender. The lender provides an advance on the unpaid invoices from the company’s customers (typically less than 90 days old) to provide the business with additional working capital.

AccordExpress Factoring is a great way for your small business to increase its cash flow in order to grow. By utilizing factoring, your small businesses can free up cash to invest in growth and outsource the administration of your accounts receivable. Call us to learn how you can take advantage of factoring for your small business: +1-844-932-9940 (Canada) / +1-844-725-4225 (US).

Factoring has the major advantage of providing the money for the goods and services you sold on terms, allowing you to access funds without restrictive covenants. The trade off for this flexibility and ease of access is that the cost service fees and origination fees tend to be higher than conventional loans.

Factoring rates vary greatly from one transaction to the next. Typically, rates are based on the advance rate required, the level of risk and the size of the facility.

Factoring involves the sale of your accounts receivable to a factoring company, whereas accounts receivable financing operates via a line of credit or asset-based loan against receivables. When compared to these loan facilities, factoring companies can offer additional services and can administer your accounts receivable. Factoring can also be structured as an off-balance sheet obligation.

Recourse factoring is a common form of receivable factoring in which you must buy back or replace receivables which have passed the eligibility period, typically 90 days, or those which are not collectible. With non-recourse factoring, the factoring company assumes the credit risk of bad debts, in the event that your customers are unable to pay due to insolvency or other financial issues.

Factoring is a common practice in the transportation industry. By using factoring, you have immediate access to cash to pay drivers, purchase fuel or maintain your equipment. If your transport business is looking to access additional cash through accounts receivable financing, you may also want to consider our equipment financing products.

If you own a small business in need of working capital, partnering with a factoring company with a successful track record is the best way to meet your needs. At Accord Financial our experience and expertise in accounts receivable financing can provide a convenient solution to your business’ unique needs. Call us to learn more about accounts receivable financing for your business: +1-844-932-9940 (Canada) / +1-844-725-4225 (US).

Company A is a wholesaler that sells frozen fruits to large grocery stores on 30-day terms. Company A needs liquidity to buy inventory and fulfill orders, but is waiting for the large grocery stores to pay their fulfilled orders. Company A turns to Accord and sells their accounts receivables to Accord. Accord provides Company A with 90% of the face value of their invoices, The remaining 10% is given to Company A when their customer pays the invoice.