What is a Factoring Company?

 

Factoring companies are highly specialized commercial finance companies, and, as we shall see, some are more specialized than others.

 

Factoring companies specialize in financing a particular asset class. Generally speaking, there are several asset classes and sub-classes in business. The first general class is known in accounting as "current assets," which are defined as assets that will become cash in less than one year. The second general class of assets is known as "fixed" or "long-term assets," for which no time limit for becoming cash is attributable. Current asset subclasses include cash, accounts receivable, deposits, inventory, etc. Fixed or long-term assets consist of land and building, machinery and equipment, etc.  Factoring companies are only interested in financing accounts or accounts receivable in the current asset class.

 

But factoring companies differ. Factoring is a very ancient business model. We refer to most factoring companies as "old school," because their business processes haven't changed in decades. They are swimming in paper, including paper invoices, purchase orders, contracts, etc., which considerably slows down the funding process. They have not made the sizable investment to modernize their administrative processes to better serve their small business clients.

 

On the other hand, Photon Funding, LLC (PF) has made that investment by creating proprietary, web-based innovative software which enables it, with few exceptions, to fund its clients' invoices the same day the invoices are created, regardless of where the client is located in the US.

 

Please use the menus at the top and bottom of our pages to learn more about our revolutionary invoice factoring model.

What is a Factoring Company?

 

Factoring companies are highly specialized commercial finance companies, and, as we shall see, some are more specialized than others.

 

Factoring companies specialize in financing a particular asset class. Generally speaking, there are several asset classes and sub-classes in business. The first general class is known in accounting as "current assets," which are defined as assets that will become cash in less than one year. The second general class of assets is known as "fixed" or "long-term assets," for which no time limit for becoming cash is attributable. Current asset subclasses include cash, accounts receivable, deposits, inventory, etc. Fixed or long-term assets consist of land and building, machinery and equipment, etc.  Factoring companies are only interested in financing accounts or accounts receivable in the current asset class.

 

But factoring companies differ. Factoring is a very ancient business model. We refer to most factoring companies as "old school," because their business processes haven't changed in decades. They are swimming in paper, including paper invoices, purchase orders, contracts, etc., which considerably slows down the funding process. They have not made the sizable investment to modernize their administrative processes to better serve their small business clients.

 

On the other hand, Photon Funding, LLC (PF) has made that investment by creating proprietary, web-based innovative software which enables it, with few exceptions, to fund its clients' invoices the same day the invoices are created, regardless of where the client is located in the US.

 

Please use the menus at the top and bottom of our pages to learn more about our revolutionary invoice factoring model.