A/R Line of Credit
Invoice Factoring Vs. A/R Line of Credit - What’s the Difference?
Some industries are perfect for invoice factoring where a lender will purchase your accounts receivable for a discount fee. Industries like transportation, staffing, and trucking are prime examples. Factoring works very well in these industries and others, but there is a better way to finance your A/R and facilitate tremendous growth.
Even with negative net income, as long as accounts receivable less than 90 days old are $500,000 or higher, Noble Funding can provide a very low cost A/R Line of Credit.
STOP Factoring!! Switch to a Noble Funding A/R Line of Credit Instead.
Unlike factoring, one low interest rate up to 90 days past invoice date. Costs do not increase after 30 days or 60 days past invoice date. With factoring, you get one rate up to 30 days past invoice date, but that rate keeps getting raised every 10 or 15 days your customer does not pay their invoice. Costs can increase dramatically if your customers pay in 50, 60, or 70 days. That does not happen with our A/R line of credit and this will save you tens of thousands, even hundreds of thousands of dollars.
- About the half the cost of traditional A/R factoring. You could be savings tens of thousands, or for large companies, even hundreds of thousands, each year.
- No more invoice notifications and having your lender call your customers all the time.
- You have more control over your business finances and destiny as a lender will no longer own your invoices.
- Better overall structure and much lower cost than invoice factoring.