WHAT IS ACCOUNTS RECEIVABLE FACTORING?

Accounts receivables factoring is nothing more than the sale of a firm's net 30 commercial accounts receivable at a discount. Factoring provides immediate cash flow to efficiently manage your growing business.

 HOW DOES FACTORING WORK?

K.W. Receivables purchases your accounts receivable at a one time discount and provides you with immediate payment. There is no long term contract, so the sale of receivables can be terminated at any time. You can also decide which accounts you want to factor. In addition, K.W. Receivables will mail all purchased invoices, perform the collection of these receivables and provide current reports showing exactly where the account stands.

 IS IT A LOAN?

The factoring of accounts receivable is not a loan because it simply entails the sale of an asset for immediate cash. Therefore, instead of waiting 30 days or more to collect on outstanding invoices, you are provided with the cash flow needed to efficiently manage your daily operations.

 WHO SHOULD FACTOR?

Factoring works best for small to medium sized businesses that are rapidly expanding or just getting started. These companies may not have the working capital necessary to effectively manage their daily business activities due to the inability to obtain a loan or a sufficient credit line from the bank. Accounts receivable factoring provides an alternate solution to businesses that are simply looking to expand without assuming additional debt.

The current financial condition of a potential factoring client is not the main concern of K.W. Receivables. The integrity of the client, the quality of goods or services provided by the client and the credit worthiness of the client's customers  are important factors we consider when qualifying a prospective client.

 WHAT IF AN INVOICE IS NOT PAID DUE TO CREDIT PROBLEMS WITH A CUSTOMER?

K.W. Receivables is a non-recourse factor. Therefore, we assume the credit risk on all accounts receivable that are purchased.