What is accounts receivable factoring?
Accounts receivable factoring is a financing solution where a business sells its unpaid customer invoices to a factoring company in exchange for immediate cash. This helps improve cash flow without taking on new debt.
How does accounts receivable factoring work?
You submit your unpaid invoices to Blaze Allen, and we will advance you a percentage of the invoice value—often within 24 hours. Once your customer pays the invoice, we send you the remaining balance minus our fee. It’s a fast, flexible way to unlock working capital.
Who qualifies for accounts receivable factoring?
Factoring is ideal for B2B companies with creditworthy customers and net payment terms. If you issue invoices and are waiting 30, 60, or 90+ days to get paid, you may qualify. There's no minimum revenue requirement, and approval is typically based more on your customers' credit than your own.
How do I know if I need accounts receivable factoring?
If your business experiences cash flow gaps due to slow-paying customers, or you’re turning down growth opportunities while waiting on invoice payments, AR factoring is an ideal solution. Use our free cash flow projection tool to assess your future cash position and determine if factoring is a smart move for your business.
