Today’s financial services world moves faster than the speed of light, Speed is also at the core of the factoring process. Speed is also at the core of the factoring process, a quick and easy cash flow solution used by large and small companies in manufacturing, distribution, transportation, staffing, construction, and many other industries. Instead of waiting 30, 60, or 90 days to receive payment on their invoices, factoring clients receive fast payment toward those invoices as soon as the work is completed. Thanks to electronic wire transfers, companies that partner with factoring firms can receive those payments instantly.
Typically, factoring companies offer several options for payment methods. Clients can choose to receive their funds through direct deposit (ACH) into a bank account, paper checks in the mail or by overnight delivery, electronic “Comcheks” that can be converted to cash at truck stops and ready cash businesses, and wire transfers to bank accounts or businesses. This flexibility lets clients choose how fast they would like their funds. Wire transfers, which must be requested by certain deadlines driven by the Federal Reserve’s cutoff times in the Eastern time zone, are the fastest method. Factoring companies typically charge for this convenience to recoup the processing expense of wire transfers, but some factoring companies provide their clients one free wire transfer a week.
Benefits of Wire Transfers
- Speed — funds can be transferred instantly
- Safety and security of funds