Accounts Receivables Financing

If you sell your products or services to businesses that pay in 30, 60, 90 days or more, Monarch Finance Solutions has a liquidity solution for you. We can finance companies that are start-ups, losing money, or in bankruptcy because accounts receivable financing is based on your customer's credit, not yours. This is not a ”debt.” You are selling an asset. But it is more than just an asset sale; it is like outsourcing your accounts receivable department. Factors provide valuable services. They check your customers' credit for you and notify you of bad risks and they provide detailed monthly statements. Qualifying accounts even get free credit insurance.

How does Factoring work?

Accounts receivables financing is known as "factoring". It is a quick and easy way to get cash for your invoices without having to wait for your client to pay you. This keeps you out of the collection business and keeps your cash flow consistent. Most factoring companies charge fees from about 1% to 3% of the invoice total. So if you have an invoice for $100 and the fee is 2%, the factoring company will advance fund up to $98.00 of that invoice and when you client pays, in this example they will keep deduct $2 fee from the $100 as payment for pre-funding your billed invoice.