Funding needs are probably the top concern for many companies as they obtain more customers and contracts, add new employees or purchase new equipment. Obtaining the funding to meet these needs can be difficult, however their are options available to companies that have a strong customer base. One funding source available that is often overlooked by companies that have many customers is their own accounts receivables. Funding using accounts receivables is known as accounts receivables factoring. In its simplest terms, accounts receivables factoring is the process of selling the company's accounts receivables to a factoring firm which in return, pays the company. Often this type of funding is used to meet a short term cash flow crunch that the company is currently experiencing because of growth or a larger than expected contract or production order. When a company bills one of its customers, they usually must wait at least thirty days to be paid and in some cases it can be as much as 120 days. This can have serious cash flow implications for a company that must maintain daily operating expenses. By using their accounts receivables as a source of funding, the company receives a payment now rather than waiting for their customers to pay them over a longer period. However, there are many obstacles to this type of funding and a company should ask the factoring firm for a detailed description of what is involved. A company can pick and choose which of their customers they wish to use as a funding source through the factoring firm. Also, it will take work on the company's part to notify their customers that they will no longer be sending payments to them, but the factoring firm. Purchase orders and invoices will need to be verified from the company customers by the factoring firm with authorized signatures and faxed directly to the factoring firm from the customer and not the company seeking to obtain funds. The factoring firm will also run a credit check on the company's customers to verify their credit worthiness.