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Accounts Receivable Financing (Factoring) Gaining in Popularity

Boca Raton, Fla., - With roots dating back more than 200 years, accounts receivable financing, or factoring, is quickly becoming the new trend in business financing. In fact, at one South Florida factoring firm, business and inquiries have tripled in the last few months. Anchor Funding Services finances businesses all over the country, from small startup companies to those firms with up to $25 million in annual revenues.

With today’s economic downturn and struggling financial markets, bank financing is tougher to come by. Not only that, if approved by a bank, funding can take 60 days or longer until the money is received. An excellent alternative financing source called factoring permits the business owner to convert its accounts receivable into immediate cash to fund its operations. The factor can provide cash to its client in less than five days and usually advances as much as 90-95% up front, with the remaining 5% balance minus its fees, after the invoices have been collected.

“We’ve seen a dramatic increase in interest for our services,” says Brad Bernstein, president of Anchor Funding Services. “Many people hear factoring and automatically think of the apparel and textile districts in New York City where factoring first became so popular. The fact is, today we are providing Accounts Receivable funding to companies in many different sectors including staffing firms, IT companies, consultants, telecom, distributors, manufacturers, wholesalers and oil and gas companies.”

In addition to receiving money quickly, the flexibility and ease of factoring is also attracting many companies to this alternative form of financing. There is much less paperwork than with a bank loan, and no credit checks, as a factor is only concerned with the credit-worthiness of the accounts receivable. Anchor Fundings unique scoring system, CreditGuard ™ evaluates the collectability of the accounts receivable and in several cases, Anchor Funding has advised its clients not to do business with certain firms due to the potential risk of nonpayment.

To grow a small business, companies need continued sources of working capital. Waiting 30- 120+ days for payment of invoices or to obtain traditional bank financing can take too long. Utilizing factoring, companies are able to get the money they need rapidly, without the requirement of pledging personal collateral and preventing the interruption of the business operation.

About Anchor Funding Services Anchor Funding Services maintains offices in Boca Raton, Fla., and Charlotte, N.C., provides Accounts Receivable Funding and Factoring Services to small and medium sized businesses. With Low Funding Rate, No upfront fees and fast approval. The company also operates Truckerfunds.com (www.truckerfunds.com) which is the freight factoring division of Anchor Funding Services.

MEDIA CONTACT:
Bruce Serbin
Reeves Laverdure PR
bserbin@reeespr.com
(561) 391-8717

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