Factoring companies in the USA provide financial services that help businesses improve cash flow by purchasing their accounts receivable at a discount. These companies primarily serve small to mid-sized businesses that face delays in customer payments but need immediate working capital. Factoring allows businesses to access funds quickly without taking on traditional debt. The process typically involves selling unpaid invoices to a factoring company, which advances a percentage—usually 70% to 90%—of the invoice value upfront. Once the customer pays the invoice, the factor releases the remaining balance minus a fee. Factoring is common in industries such as transportation, staffing, manufacturing, and healthcare. U.S. factoring companies vary in size and specialization, from large financial institutions to niche firms focused on specific sectors. With a focus on flexibility and speed, factoring has become a strategic tool for businesses looking to maintain liquidity and grow without relying on conventional loans.
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