Invoice factoring works by you selling invoices to an invoice factoring provider, who then operates as they see fit to bring payment in from your customers. The factoring provider may only want to purchase the lowest-risk parts of your receivable ledger and may also charge you extra if they fail to collect payment from customers within an agreed timeframe.
Corcentric ManagedAR operates as an extension of your accounts receivable team, removing the risk of heavy-handed collections processes, or a third-party collections agency. ManagedAR is also applicable to your entire receivable ledger, with a non-recourse agreement to ensure you are not liable for any customers who default on payments – this is covered by the service charge, calculated to absorb a reasonable degree of risk.