Factoring Receivables For Car Dealerships

If you own a car dealership of any size, keeping the reins on accounting can become a huge investment of time and energy. Keeping track of multiple customer accounts, how much of a balance is open on each account, and when those payments are due, can make for some very long hours when balancing the books. Additionally, waiting on payments from customers can place a strain on cash flow. In order to streamline the accounting process, and ensure revenue comes in quickly, many car dealerships are factoring receivables.

An Introduction To Factoring Receivables

Factoring receivables is a service arranged with a reliable commercial finance partner with the capital reserves to cover the amounts owed by customers on open invoices. An agreement for factoring receivables can be set up in as little as 48 hours. After the agreement has been finalized, open invoices that are submitted to the commercial finance company (referred to as a “factor”) are converted to revenue within 24 hours.

No Credit Checks

One of the major points that sets factoring receivables apart from traditional lenders, such as banks, is that there are no credit checks run on car dealerships in order to get access to this type of financing. Instead, the factor focuses on the overall profitability of the business, and the financial standing of the customers. This allows car dealerships to preserve their credit ratings.

No Additional Debt

Factoring receivables does not place any debt on the balance sheets. Because this form of financing is a simple sale on receivables, car dealerships do not have to take on extra debt. The service is also much faster to process, unlike traditional bank loans.

Simplified Accounting

By factoring invoices, the burden of keeping track of the balances on customer accounts is shifted to the finance company providing the services. Car dealerships only have to worry about submitting invoices and keeping track of revenue. This reduces the time spent on sending out reminders for payments. Furthermore, with revenue coming from one centralized source, bookkeeping becomes much more simplified across the board.

Start Factoring Receivables Today

CounselPro Lending has the capital resources to provide fast and efficient conversion of open invoices to the revenue you are owed. Call our team at 1-888-292-3322 and put our expertise to work for you to help your business achieve long-term success.


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