What is Invoice Factoring?
Invoice Factoring is an effective form of business financing in which you sell your invoices to a factoring company in exchange for immediate payment. It eliminates the 30 to 60 days that your customers take to pay your invoices and provides you with the working capital you need to run your business. Invoice Factoring is simple and can be used by most businesses.
Here is how invoice factoring works:
- You deliver goods / services to your client and issue an invoice.
- You sell your invoice to a factoring company, who immediately advances you the 1st installment. This will be between 70% and 90% of the gross value of the invoice. You usually receive the advance in as little as 24 hours.
- After 30 to 60 days, the invoice is paid by your customer and the factoring company advances you the remaining funds as a 2nd installment.
- An important result of the using invoice factoring you will get predictable cash flow. Factoring eliminates the uncertainty of when you will get paid.
Obtaining an invoice factoring financing line is a lot faster, simpler and easier than applying for a conventional business loan...
- Factoring invoices gives you predictable cash flow. It eliminates the uncertainty of when you willll get paid by your customers.
- Invoice factoring lines are tied to your sales. Your financing line grows as your sales and your company grow.
- Factoring is easy to obtain and can be set up in days.
- Factoring invoices is ideal for established companies AND startups.
How long will it take to get the cash for my business
We are the only Invoice Factoring providers in the country to offer cash the same day of applying for invoice factoring. Begin your online factoring application now, and an invoice factoring specialist will contact you before the end of the business day.