Grow Your Business: Use an LA Factor

Los Angeles is home to thousands of people… and thousands of businesses. How does a company stand out or grow when there are that many businesses around it? They use accounts receivable factoring.

What is Invoice Factoring?

Invoice factoring, also known as accounts receivable factoring, is the process of selling active invoices to a factoring company for a cash advance.

How Does Factoring Work?

Factoring is simple. To get started, fill out an online form or give us a call to speak with one of our factoring specialists.

From there, we use the information you’ve told us about your business to pair it with the best factoring company in Los Angeles that fits your needs. The factoring company then puts your business through a quick approval process.

Once approved, your company can start submitting invoices for work completed and orders filled. When you do that, the factoring company will call your customers and check that the services were done or goods were delivered.

Then, the factoring company gives your Los Angeles business a cash advance of up to 95 percent of the invoice amount, keeping the rest as a reserve.

When your business’ customers pay the factor, the factor will release the reserve to your company, minus a small factoring fee.

The bottom line is that factoring companies are invaluable to the business ecosystem in the Greater Los Angeles Area. By offering immediate access to working capital, they enable a diverse array of businesses to maintain operations and fuel growth. Every sector, from entertainment to technology and beyond, benefits from the tailored financial solutions that these companies provide. The vibrant, varied economy of this region thrives in part due to the critical support offered by factoring firms.