WHAT IS FACTORING?

Factoring is buying accounts receivable from businesses in the form of invoices at a small discount, thereby improving cash flow for that business.

Factoring is much like a credit card service for a business. If all of your customers paid with a credit card, your company might gladly pay the credit card fee of 3, 4 or 5% in exchange for receiving payment immediately.

Put another way: Factoring is a means of financing a business through the sale of accounts receivable.

SIMPLE!!!!!!

FACTORING IS A NO-DEBT SOLUTION!
Unlike borrowing money to meet cash flow needs, Factoring does not create debt. "Getting a loan" weakens your balance sheet by adding debt to the liability side. Factoring, on the other hand, improves your balance sheet by converting receivables into cash. Loans also require collateral, thus they are limited by your hard assets. Factoring is not a loan, so there is no debt to repay.

What Factoring with CFC can do for your business:

  • Provide money without qualifying.
  • Help meet payroll deadlines.
  • Provide cash for growth and expansion.
  • Improve credit rating.
  • Eliminate bankruptcies.
  • Provide cash for marketing.
  • Help pay back taxes.
  • Increase purchasing power.

    and more!

    In most cases, the original funding requires 2 to 3 business days. Thereafter, Factoring an approved account with Carter Funding Corporation takes less than 24 hours.


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4938 William Arnold Road • MEMPHIS, TN 38117 • (901) 685-1571 FAX: (901) 685-1579
P.O. Box 770416 Memphis, TN 38177-0416

 

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