Accounts receivable factoring is a type of financing that allows you to sell your invoices at a discount in order to get funding quickly. This can be a helpful solution if you are waiting on customers to pay their invoices and need cash flow to keep your business running.
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frequently asked questions
Invoice factoring (account receivable factoring) is a type of financing in which businesses sell their invoices to third-party financiers with a discount. The financier then collects the payments from the customer, minus a fee. Invoice factoring can provide businesses with much-needed cash flow.
- When businesses sell their invoices to third-party financiers, they are selling an asset. The financier is then responsible for collecting payment from the customer. The business receives a percentage of the invoice value upfront, minus a fee. once the customer completed the payment, the financier keeps the remaining balance, minus a second fee.
No, accounts receivable factoring is not a loan. When businesses sell their invoices to third-party financiers, they are selling an asset. The financier is then responsible for collecting payment from the customer.
- Companies that are selling service or product to another businesses apply for factoring in order to gain the working capital they need. We know that every business is different, which is why we offer tailored solutions to support businesses of all sizes across nearly any industry. Our services are perfect for companies in the staffing, manufacturing, distribution, transportation, and information technology industries – just to name a few. If you want more details, click here.
- whether you just started your business or have been in business for years, we can support you find the funding you need.
- Aging report of accounts receivables
- Invoices you want to factor
- Customers list
- Completed application
- Articles of Incorporation
- If you’re new to factoring, then some terms might be confusing. Visit our common factoring terms page so you can learn.
To be eligible for factoring, invoices must:
-Be from B2B transactions
-Have a creditworthy commercial customer
-Have terms of net 30 days or shorter
- If you’re interested in starting factoring with us, the first step is to fill out our online application. After that, we’ll review your information and get in touch to discuss the next steps. Once everything is finalized, we’ll set up an account for you and you can start funding your invoices right away!
Once we approve your invoices for funding, you’ll receive the funds within 24 hours.
The approval process usually takes 24-48 hours. In some cases, it may take longer if we need additional information from you
Usual advance rate is 70-80%. However, the actual amount may be lower or higher depending on the factors mentioned above.
The cost of factoring receivables varies depending on the factors, such as the amount of the invoice, the creditworthiness of your customer, and the length of time until the invoice is due. However, most businesses end up paying between 1% and 5% of the invoice value.
- No, our contracts are flexible and there is no long-term commitment. You can factor as much or as little as you want.
No, you are not required to factor every invoice. You can choose which invoices you want to factor.
- No, there is no monthly minimum required.
- No, there is no monthly minimum required.
No, there is no limit to how much funding you can receive. We can work with you to create a solution that meets your needs.
There are many benefits of factoring, such as:
-You can get funding quickly – often within 24 hours
-You don’t have to give up equity in your company
-You don’t have to take on debt
-You don’t have to go through a lengthy approval process
- Recourse factoring is your customer does not pay the invoice, you are responsible for paying back the funding. Non-recourse factoring means that you are not responsible for paying back the funding if your customer does not pay the invoice. that means non-recourse factoring rate bit higher than recourse factoring.
Yes, you can still qualify for invoice factoring even if you have bad credit history. The approval is based on the creditworthiness of your customers, not your personal credit score.
Yes. we can consider about that , kindly contact us
Yes, you can still qualify for factoring even if you owes back taxes. The approval is based on the creditworthiness of your customers, not your credit score or your company’s tax situation.
Yes, we have, please contact us or, for more details and learn more from the small business factoring page.