Factoring companies in New Jersey 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 a New Jersey receivables factoring company that will buy your receivables. You’ll pocket much needed cash that you can then reinvest in your business.

You can also use a New Jersey invoice factoring company if you want to expand your business. Rather than taking a loan and going into debt, sell your invoices to a NJ 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 a New Jersey-based business, consider the following when looking for New Jersey receivables financing:

1. Check out local New Jersey factoring companies.

2. Find an online factoring company to handle your New Jersey receivables factoring.

3. Select a nationwide factoring company that has factoring companies in New Jersey.

Action Steps
The best contacts and resources to help you get it done

Check local New Jersey invoice factoring companies to receive the personal touch

Whenever you are dealing with a local company, you're more likely to get the personal touch. However, the NJ factoring company doesn't have to be in the same state to be local. There are many 'local' NJ factoring companies based in neighboring states.

I recommend: Alliance One is a New York-based factoring company that has been in business for more than 30 years. It specializes in factoring to small and mid-size businesses and is ideal for Northern New Jersey businesses. Praxis Capital is located in West Conshohocken, PA, which is a good location if your business is located in Central or Southern New Jersey.

Look for reliable online factoring companies that can handle your New Jersey A/R factoring

When looking at online factoring companies you need to look at its history and the ease of approval by the factoring company. Also, take into consideration the rates the company charges for handling your New Jersey accounts receivable (A/R) financing.

I recommend: Rexford Funding has account executives who have been in the finance business for more than 30 years. It is committed to bringing factoring to small 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 New Jersey invoice factoring

Even though local New Jersey business factoring companies are likely to provide more personalized service, there are some excellent national companies that can handle your New Jersey 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%. Riviera Finance is a nationwide company with an office in New Jersey. Rivera guarantees 24-hour funding.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Getting a loan in New Jersey is difficult for new businesses. New Jersey factoring companies offer you an alternative since factoring is not a loan, and your customers' ability to pay is the basis of your approval.
• •  Make sure you understand the terms of the New Jersey receivables factoring company that you decide to engage. The amount of the advance on your accounts receivable can vary from 70% to 95%, and the fees vary from 1.5% to 3% of your receivables.