Alabama factoring companies buy your accounts receivable and advance you a percentage of the money. You receive the balance when the customer pays the invoice minus a fee. If your business has grown so much that your accounts receivable are much larger than your cash on hand, now’s the time to look for companies that have invoice factoring. Alabama accounts receivable factoring companies will buy your receivables and you’ll pocket much needed cash that you can then reinvest in your business.
You can also use accounts receivable (A/R) factoring in Alabama if you want to expand your business. Rather than taking a loan and going into debt, sell your invoices to an Alabama invoice factoring company to help your business grow. You can use the cash you receive to buy more inventory, hire more people or upgrade your equipment.
If you run an Alabama-based business, consider the following when looking for Alabama factoring companies:
1. Check out local Alabama A/R factoring companies.
2. Find an online factoring company to handle your Alabama receivables factoring.
3. Select a nationwide factoring company that has A/R factoring in Alabama.
Action Steps
The best contacts and resources to help you get it done
Check local Alabama business factoring companies to receive the personal touch
Use local companies that have invoice factoring. Alabama based companies will provide more personalized service for your Alabama invoice factoring business than national companies.
I recommend: Allied Capital Direct, started in 1992, caters to businesses that don’t qualify for bank financing. They have representatives in Alabama.
Porter Capital Corporation has been in business since 1991 and specializes in providing working capital overnight. They have an office in Birmingham AL.
Look for reliable online factoring companies that can handle your Alabama A/R factoring
When looking at online factoring companies you need to checking company history and the ease of approval by the factoring company. Also, take into consideration the rates the company charges for handling your Alabama accounts receivable (A/R) financing.
I recommend: Alliance One has account executives who have been in the finance business for more than 30 years. It specializes in factoring to small and mid-size businesses.
Crestmark Commercial Capital Lending, LLC has been in business since 1991 and provides factoring to every size business.
Find a national company that can handle your Alabama receivables financing
Even though local Alabama business factoring companies may provide more personalized service, there are some excellent national companies that can handle your Alabama receivables financing.
I recommend: Commercial Capital LLC has representatives in every state and offers factoring to small and mid-size businesses. It has rates as low as 1.5% and advances as high as 90%.
ONAN Commercial Lending is a division of ONAN Capital Holdings, Inc and provides financing to small and medium-sized businesses nationwide.
Tips & Tactics
Helpful advice for making the most of this Guide
- Getting a loan in Alabama is difficult for new businesses, so look into factoring receivables. Alabama A/R factoring companies offer you an alternative, since factoring isn't a loan, and your customers' ability to pay is the basis of your approval.
- Make sure you understand the terms of the Alabama A/R factoring company that you decide to engage. The amount of the advance on your accounts receivable can vary from 65% to 97%, and the fees vary from 1% to 3% of your receivables.
The official source of Alabama Factoring Companies is
the Alabama Factoring Companies page at Business.com
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