What is Invoice Factoring?
Invoice Factoring is a form of alternative financing or asset-based lending in which the business owner sells their accounts receivable (AKA Invoices) at a discount to a Factoring Company for immediate cash.
Credit decisions are not based on the business owner’s personal credit or the credit of the business but rather the creditworthiness of the accounts they are selling to, or the “quality” of the business’s accounts receivable. Business owners can access essentially unlimited working capital up to the creditworthiness of their customers.
Want to grow your business and need to keep cash flow?
Our financing facility will grow right along with their sales and business needs as opposed to a bank that is slower and balance sheet based, or an MCA that has limitations based on cash flow/deposits.
Factoring can allow businesses to take on new projects or new accounts that they otherwise wouldn’t be able to take due to cash flow issues.
They cannot afford wait 30, 60 or 90 days to be paid as they have payroll, supplier expenses, rent, etc. that must be paid. With Factoring, as soon as the business is done invoicing their customer(s) and submit the documentation to the Factoring company more often than not the business is funded same day 80-90% of the value of their invoice(s), allowing them to meet payroll, supplier payments, expand into new markets, etc. This cycle continues each time the business bills its customers.
Get your FREE Guide to invoice factoring here INVOICE FACTORING GUIDE