What is Factoring?

Factoring is a centuries-old financial method used to ensure smooth cash flow for a business.

Many companies provide goods and services for other businesses and agencies, then invoice them and await payment. This waiting period is often quite extensive, ranging from 30 to 120 days. During this time, your business needs capital to continue operating and growing, whether it’s paying your staff, stocking your shelves or paying overhead costs. This is where factoring plays a significantly beneficial role for you.

Factors like AVA purchase your invoices so you get the money immediately, less a minute fee, rather than waiting months for payment. We then deal with receiving the balance from your clients. Your business continues to receive the crucial cash flow necessary to keep it running and expanding.

How it Works

AVA will fund your invoices, and get you the money within 24 hours, so you can rest assured knowing your company continues to operate smoothly and efficiently – no worries, hassles or setbacks.

  • Your business provides goods and services to another company, then you send invoice to AVA
  • AVA advances your money
  • AVA forwards the invoice to your client
  • Client pays AVA
  • AVA returns the remaining funds to you, less a small fee

Get in touch to learn how you can take advantage of factoring.

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Why Should I Factor?

Factoring is quick, easy and convenient, bringing you the cash your business needs to continue operating and growing. Factoring has a large array of benefits, including:

  • No need to wait weeks or months for a bank loan approval
  • Factoring is based on your client’s credit, not yours
  • Can factor time and again without constantly seeking re-approval or new loans
  • The return you get by investing money received from factoring greatly exceeds the minimal factoring fees, bringing you increased income in the long run.
  • Don’t have to deal with banks, whose frequent credit checks lower your credit score over time
  • Factoring is not a loan, so there’s no debt on your company’s balance sheet!
  • You get money immediately, within 24 hours or sooner