A factoring receivable is when a company sells its invoices to a factoring company at a discount. After the sale, the accounts receivable balance is transferred to the factoring company's balance sheet since the ownership of the receivable has been passed.

Now that the factoring company owns the receivables, they generally provides all the required credit, collection, and accounting services necessary to collect the receivables.  This collection-based service is an added benefit that many company's didn't know was included in the factoring loan process but once it is in place they don't ever want to be without it.

Let Sovereign Funding Group help you obtain the capital that fuels your business. We understand the difficulties of startups and high-growth businesses. SFG have experienced funding sources who understand your industry and want to help you grow your business. In short, we have the financial resources, experience and expertise to put factoring receivables to work for your business and its accounts receivables.

Feel free to contact us anytime for a free no-risk consultation toll-free at (877) 836-4661 or email us if you have any questions.