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Invoice and Accounts Receivable Factoring and Financing

About Accounts Receivable and invoice Factoring

Accounts receivable / invoice factoring is the process of selling your slow paying invoices to Mascor Capital in exchange for an immediate cash injection into your business.  Factoring enables a business to turn slow paying invoices into fast cash, freeing up capital and allowing you to invest back into your company. 

On this page we highlight some of the benefits of using our accounts receivable and invoice factoring services, compare factoring to traditional bank financing and provide some general information about how the process works.  

 

Benefits of Factoring

Cash flow challenges are one of the most common hurdles for early stage and fast growing businesses to overcome.  Factoring provides a sensible alternative to bank loans and lines of credit without taking on any debt.     

Some of the benefits of factoring include: 

 

Factoring vs Traditional Financing

Financing provided by traditional institutions such as banks requires businesses to subscribe to rigid screening and to demonstrate a history of profitability to obtain financing based on past performance.  We partner with companies who are forward looking and have the opportunity to grow but have financial constraints.  By converting accounts receivable into cash, a company can take advantage of incremental growth opportunities as they arise. 

Factoring vs Traditional Financing Comparison: 

 

How it Works

With us, you continue to operate your business as usual providing your service / product to your clients on a day-to-day basis. 

  1. You approach us with the invoices you want to factor (ie. sell to us) - we learn about your business and your unique situation and set you up on our system.  
  2. We quantify the amount to be factored and verify the invoices you have submitted.
  3. We enter into an agreement to factor for you (ie. purchase your accounts receivable). 
  4. We advance 75%-80% of the invoice face value to you immediately. 
  5. We receive payment of the factored invoices from your clients and pay you the remainder owing less our factoring fees.  

Once you are set up with us, we can factor future accounts receivable at your discretion and quickly - usually within 24 to 48 hours. 

 

What Types of Companies use Factoring? 

Businesses that factor need to have business-to-business sales with reputable companies.  As factoring is invoice-based financing, we place significant emphasis on the quality of your customers' credit worthiness.

While just about any corporation with business to business sales could factor, certain industries tend to factor their invoices more often than others.  Some of the more common include: 

  • Oil and Gas Service Companies
  • Distribution Companies
  • Temporary Staffing Companies
  • Commercial Landscaping Companies
  • Transportation / Trucking Companies
  • Manufacturing Companies
  • Commercial Janitorial Companies
  • Security Guard Companies
  • Commercial Construction Contractors
  • Wholesale Companies
  • Courier services

 

Interested in Learning More About Factoring?

Accounts receivable factoring is an effective way to ensure your business can meet its financial obligations or to facilitate rapid growth.  We invite you to contact us for a free no obligation consultation to determine if your business is a good candidate for factoring or if another form of financing may be better suited for your situation.  

Please also visit our Articles Page and Scenarios Page to learn more about invoice factoring and how it could help your business.