Factoring is merely the selling of invoices, at a discount, to a third party called a factor. Accounts receivable financing is another term for Factoring but describes a credit facility rather than a discount transaction. Factoring has been around for centuries and currently provides in excess of 125 billion per year of financing to industry. Factoring works as follows: your company sells or transfers an invoice (accounts receivable),which represents money due from the sale of goods or services to your customer to ACG to avoid waiting 30, 60 or more days to get paid. Then ACG Advances you up to 80% of the Invoice amount, thus speeding cash flow necessary to pay day to day operating expenses and to grow the business. When the invoice is paid ACG sends you the 20% reserve it held back less a small discount fee, completing the transaction.

Since traditional bank financing is usually not available to new businesses, factoring is a perfect solution for obtaining capital without creating debt. Cash flow is immediate, as funds are usually available within 24 hours or less once your account has been established. There are many advantages to your company for factoring.

Factoring through ACG is available to companies as young as one day old, those with tax liens and those who may have or are contemplating filing for bankruptcy protection.