Differences between Factoring and Funding
- Factoring involves selling invoices at a discount to a third-party company, while funding refers to obtaining a loan or line of credit.
- Factoring involves the third-party company collecting payments from customers, whereas funding requires the business to make loan or credit repayments.
- Factoring relies on the creditworthiness of the business's customers, while funding focuses on the business's creditworthiness.
- Factoring improves cash flow by converting invoices into immediate cash, while funding can be used for various business purposes.
- Factoring transfers credit risk to the factoring company, whereas funding leaves credit risk with the business.
International Factoring Association (IFA)
Key industries we typically fund
Distributors and Wholesalers
Manufacturers
Service companies
Importers
Our story
Founded in early 2022 by Nicolas Uribe and Pablo Penuela, our company brings together the extensive experience and entrepreneurial spirit of its founders in the finance sector, particularly in factoring and working capital financing. Recognizing the challenges faced by small companies that are underserved by traditional banks, we established our business in Florida with a clear mission to address their needs.
We firmly believe that working capital is the lifeblood of any growing business. Understanding the importance of accessible financing options, we specialize in invoice factoring, providing companies with a reliable and efficient way to unlock the working capital tied up in their invoices. We see these invoices as tangible evidence of our clients' business activity, serving as the best proof of their ongoing success.
Mission values and culture
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Mission
Our - 02
Values
Our - 03
Culture
Our
Mission
Is to empower small and medium-sized enterprises (SMEs) within the Hispanic market in the United States by providing tailored funding support, enabling them to grow their businesses and overcome the challenges of limited access to bank loans and insufficient working capital. We are committed to being a trusted financial partner, offering flexible solutions and personalized service to fuel the success and expansion of our clients' companies.
Values
- We believe in empowering SMEs within the Hispanic market by providing them with the financial resources and support their need to achieve their growth ambitions and unlock their full potential.
- We are committed to ensuring accessibility to funding for SMEs that face obstacles in obtaining traditional bank loans. We aim to bridge the gap and offer accessible financial solutions tailored to their unique needs.
- We value building strong and lasting partnerships with our clients. We foster open communication, trust, and collaboration, working alongside our clients as a dedicated financial ally throughout their journey of business growth.
- We are driven by the desire to make a positive impact on the growth and success of SMEs within the Hispanic market. We strive to provide them with the necessary working capital to seize opportunities, expand their operations, and contribute to economic development and job creation in their communities.
Culture
- We embrace and celebrate diversity in all its forms, fostering an inclusive and multicultural environment where different perspectives and backgrounds are valued and respected.
- We promote a culture of collaboration, teamwork, and open communication, encouraging employees to share ideas, support one another, and work together to achieve common goals.
- We prioritize our clients and their needs at the heart of everything we do. We strive to deliver exceptional customer experiences by listening attentively, understanding their unique requirements, and providing tailored solutions and excellent service.
- We value a culture of continuous learning and personal growth, providing opportunities for professional development, training, and knowledge sharing. We encourage employees to stay abreast of industry trends, enhance their skills, and embrace a mindset of lifelong learning.
Our company
This is an option where companies can convert their pending invoices into cash!.
More than 50%
Of recurring clients
More than 12
Years of relevant experience
More than $120
Mln deployed
More than 200
SMEs served
More than 70%
Of process automized
Less than 36
Hours to approve an application
Geographical focus
Florida
The Florida market presents a dynamic and thriving landscape for the businesses we support. With a substantial population of Latin American entrepreneurs and businesses, there is a strong demand for funding support to facilitate growth and overcome the challenges of limited access to traditional bank loans. Florida's strategic geographic location as a gateway to Latin America further enhances the opportunities for factoring companies to serve this market. By providing tailored financial solutions, such as invoice factoring and working capital advances, factoring companies can support the expansion and success of SMEs within the Latin market in Florida, helping them to seize opportunities, enhance cash flow, and fuel their business growth.
Georgia
The Georgia market offers significant potential for the businesses we serve which are quite diverse. With a growing Hispanic population and a thriving business community, there is a demand for flexible financial solutions to address working capital challenges and facilitate growth. By catering to the specific requirements of SMEs in the Latin market in Georgia, factoring companies can provide access to capital, enabling businesses to invest in their operations, expand their reach, and take advantage of emerging opportunities. The factoring industry plays a vital role in empowering these businesses, fostering economic growth, and driving success in the SME Latin market in Georgia.
Financial products
Recourse factoring
Recourse factoring is a type of factoring arrangement in which the business retains the responsibility of repurchasing any unpaid invoices from the factoring company. In this arrangement, if a customer fails to pay an invoice, the business is liable to buy back the invoice from the factoring company. Recourse factoring is commonly used by businesses that have a strong credit control system in place and are comfortable assuming the credit risk associated with their customers.
read moreNon-recourse factoring
Non-recourse factoring is a factoring arrangement in which the factoring company assumes the credit risk and does not require the business to repurchase unpaid invoices. In this arrangement, if a customer fails to pay an invoice, the loss is absorbed by the factoring company. Non-recourse factoring provides businesses with protection against customer non-payment, making it an attractive option for those seeking to minimize credit risk.
read moreFactoring for importers
Factoring for importers is a specialized factoring service designed to assist businesses involved in importing goods. It provides immediate working capital by offering advances on invoices related to imported goods. This type of factoring helps importers bridge the gap between paying suppliers and receiving payments from customers, improving cash flow and supporting the growth of their import operations.
read moreFactoring for exporters
Factoring for exporters is a specialized financial service that provides immediate working capital to businesses engaged in exporting goods or services. It offers advances on invoices related to exported goods, enabling exporters to bridge the gap between shipping products and receiving payments from international customers. Factoring for exporters helps improve cash flow, mitigates the risks associated with long payment cycles and international trade, and supports the growth and expansion of export operations. By leveraging their accounts receivable, exporters can access funds quickly and efficiently, ensuring smooth operations, increased liquidity, and sustained business growth in the global marketplace.
read moreRecourse factoring is a type of factoring arrangement in which the business retains the responsibility of repurchasing any unpaid invoices from the factoring company. In this arrangement, if a customer fails to pay an invoice, the business is liable to buy back the invoice from the factoring company. Recourse factoring is commonly used by businesses that have a strong credit control system in place and are comfortable assuming the credit risk associated with their customers.
FAQ
Can I choose which invoices to factor, or do I have to factor all of them?
You have the flexibility to choose which invoices to factor. Whether you want to factor all your invoices or select specific ones, we can accommodate your preferences. Our goal is to provide you with a tailored solution that meets your unique cash flow requirements.
How does the factoring process work?
The factoring process is simple. You submit your unpaid invoices to us, and we verify the invoices and the creditworthiness of your customers. Once approved, we give you a credit line and you can advance cash (typically 80-90%) of the invoice value upfront. We handle the collection process and, once your customers pay, we provide you with the remaining balance, minus a small fee.
How quickly can I get approved?
Upon sending all required documentation, you can get your credit line approved within 24 to 48 hours. Our streamlined process ensures a quick turnaround, providing you with the cash flow you need to meet your immediate business needs.
What happens if my customers fail to pay their invoices?
In the event that your customers fail to pay their invoices, we handle the collection process on your behalf. Depending on the terms of our agreement, we may work with you to resolve the situation or pursue legal action, if necessary. However, the risk of non-payment is usually mitigated by our thorough credit assessment of your customers or credit insurance
What is factoring and how can it benefit my small business?
Factoring is a financial service where we purchase your outstanding invoices and provide you with immediate cash flow. This can benefit your small business by improving your working capital, providing funds for growth opportunities, and reducing the stress of waiting for customer payments.
Contact Us
Do you have questions about any of our services or would you like more information? Leave us a message and one of our advisors will contact you to help you.
n@ablcredit.com
Telephone number
+1 (954) 807-4078