What is Factoring?

Are you looking for the highest degree of flexibility? Account management gives you the freedom to work open purchase orders and receive projects for a set discount fee. Account mangement is a financial service used to boost a company’s work flow. Account management is not a loan. A company sells its unpaid invoices to the management company at a discount. The management company provides immediate work flow for those invoices. The management company now owns the invoices and will collect according to the payment terms of the unpaid invoices from the customer who is being invoiced, typically 30-90 days.

Sample Account Management Scenario

Let’s take a look at a sample AMS scenario below:

A contractor doing maintenance for municipalities is billing for completed work but won’t collect payment for 30, 60 or 90 days. In the meantime, he needs to pay his employees and purchase materials for his next job. In order to solve his work flow problem, he chooses to development his business. Once his service is completed, he sends his customer to the management company. We verify completion of work and advance up to 90% of the invoice within 24 hours. We send the business to the customer and will collect payment in 30-90 days. Once we are paid, the remaining 10% of the account value will be paid to the contractor, minus the management fee.