Factoring
Accounts
Receivable
Can Improve
Your Cash Flow

Accord—A Factor in Your Success

Factoring is the purchase of a company’s receivables where the factor advances 75-90% of the face value of the invoices once the product or service is delivered to the customer. It’s like a real-time line of credit in terms of cash flow. The reserve, the 10-25% is given to the company when their customer pays the invoice.

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. This means you do not have to wait 30-90 days for your customers’ payments anymore.

Small and medium-sized businesses are often short on cash, especially those selling on terms, and collections can be a strain on time and resources.

If your company is growing quickly or facing challenges, a shortage of liquidity can be magnified. When cash is tight or collecting your accounts receivable is an issue, factoring can be the solution you need.

Factoring is an effective working capital solution when your business:

  • Doesn’t qualify for conventional bank financing
  • 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 low as $500,000 and grow this 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% which was held back from funding.  Our factoring fees are 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 client-focused and technology-driven. 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.

We are a longstanding member of the International Factoring Association, where we strive to serve the invoice factoring community with 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. We understand the challenges you face and can craft a solution that’s best for you.

As our relationship grows, our ability to adapt and respond to your evolving needs and circumstances grows too. Our experience team of professionals has many years of financing a wide range of industries, in a multitude of circumstances and economic situations resulting in our ability, to help you grow with cost-effective financing solutions.

Frequently Asked Questions

Factoring is when a business like yours, sell its accounts receivable to a third-party lender. The lender provides an advance on the business’ unpaid invoices (typically less than 90 days old) to provide the business with additional working capital.

Factoring has the major advantage of providing the money for the goods and services you sold on terms. Factoring also allows you to access funds without restrictive covenants. Factoring is an ideal solution to grow your business at its own pace and extend payment terms to your customers. The only disadvantage of factoring is that the cost of financing tends to be higher than conventional loans due to its flexibility and easier access.

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 vs borrowing via an operating 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. Whereas, with non-recourse factoring, the factoring company assumes the credit risk if your customer is unable to pay the invoice due to an insolvency or other financial issues.

AccordExpress Factoring is a great way for your small business to increase its cashflow 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 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.

You are best to work with an experienced factoring company, like Accord Financial, who has a successful track record working with companies like yours and will structure its accounts receivable financing solution to your business’ unique needs. Call us directly 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 selling frozen fruits to large grocery stores on 30-day terms. Company A needs liquidity to buy inventory at a better price and fulfill  orders, but is waiting for the large grocery stores to pay their fulfilled orders. Company A turns to Accord and sell their Accounts Receivables to Accord. Accord provides Company A with 90% of the face value of their invoices, The reserve, the 10% is given to Company when their customer pays the invoice.