Accounts Receivable Factoring (also known as accounts receivable funding) is the process of assigning your current accounts receivables at a discount to a factoring company providing a source of quick cash to your business. It's a very simple transaction in which you trade an invoice from your receivables for actual cash. Accounts receivable factoring does not generate debt as the factoring process does not generate a loan. Instead, it is a cash flow optimization tool for your company to meet is current and future payment obligations in a timely and secure manner. Benefits of accounts receivable financing:

• Allows companies to extend longer payment terms to customers in industries with payment terms longer than usual
• Frees up working capital especially when tied up in inventory
• Provides a quick form of financing in which tax statements or other financial documents are not often required
  
• Provides flexibility and can be applied to one customer, a small group of customers, or all customers
  
• Can be applied to international as well as domestic customers
  

Stellar Risk Management Services, Inc. is an independent agent for several financing companies. Please contact Stellar Risk Management through our inquiry form or by phone. We will be pleased to discuss this very useful financing tool with you.

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