Factoring gives you the constant funding you need to take on bigger clients, hire more staff and pay all your bills as they come in. By working with a factoring company, If you’ve ever felt limited by your business’s cash flow, factoring could be the solution for you. With proper invoicing and account receivables management, you can transform your cash flow and take your business to new heights.
The Basics of Invoice Factoring Services
If you want to get paid for your invoices immediately, look into getting an invoice factoring service. It’s not uncommon for businesses to have customers who take weeks or even months to pay them, But by utilizing this form of financing, businesses can get cash for their invoices within a day.
The key distinction between a loan and working with a factoring company to receive your outstanding invoice payment, is that loans pile on debt. Factoring provides businesses with immediate payment for their products/services, so customers don’t have to wait for their next billing cycle. If you want to learn more about this process, click here!
Factoring can provide long-term financing for businesses, but it’s usually chosen as a temporary fix during times of high seasonal cash flow. For example, if a company’s customers typically have slow payment terms, The business may send out invoices over an extended time.
Could Invoice Financing Help Make Your Business Expansion Plans a Reality?
A factoring company can help your business resolve the following situations:
With the help of factoring, you can take on bigger projects, hire more staff and cover all costs with ease. With a factoring company, you can improve your cash flow and grow your business. If you’ve ever had to miss out on an opportunity due to insufficient funds, then working with a factor might be the right solution for you.
when you can’t afford to wait, consider payroll and bills piling up. Draining your energy with customer collections takes away from more pressing matters. Factoring gives your business the financial stability it needs to grow.
If your company is struggling to get off the ground or if you need quick access to cash without taking on debt, an invoice factoring company may be able to help. These companies provide funding for both startups and established businesses. Learn more about how factoring can help startup companies succeed.
If you’re in dire need of cash flow for your small business, look no further than invoice financing. With factoring, you can be sure to receive the money fast to cover expenses such as payroll.
Many businesses are choosing to factor their invoices for the quick cash it provides (within 24 hours) and its unmatched flexibility.. There are no limits on how much you can fund or for how long–it’s entirely up to you when and whom you want to factor Invoices with.
A poor credit score won’t hurt your chances of qualifying for factoring.
Qualifying procedure for Factoring
Invoice financing is ideal for businesses that provide both services and products to other businesses, this includes government contracts. If you’re billing customers directly, it’s more beneficial to take out an unsecured loan or merchant cash advance.
The process for invoice financing is quite simple. The biggest factor in approval is the creditworthiness of your customers because they’re the ones who will be paying off the invoices. Additionally, none of the invoices can already be pledged as collateral to another party. You can expect to pay this invoice within 90 days, but we sometimes make exceptions depending on the circumstances. There is no required minimum credit score and start-ups are usually approved without issue. It’s easy to start using our services and all you have to do is give us a call.
rates of Invoice factoring: What You Can Expect
Amounts vary based on the industry when it comes to factoring, but usually you can expect an advance of 80% to 95% of what the invoice is worth. Amounts vary based on the industry when it comes to factoring, but usually you can expect an advance of 80% to 95% of what the invoice is worth immediately with the balance, less any fees at the time of invoice payment. For invoices around $3,000, you’re likely to receive an advance of between $2,400 and $2,850. Several elements go into calculating factoring rates.
How much money can you expect to get from factoring? The amount varies depending on the industry, but the average business owner could potentially receive up to 95% of the invoice amount in advance. For example, if you submit an invoice for $3,000, you can expect to receive an advance of between $2,400 and $2,850. Rates are based on factors such as creditworthiness and invoicing history.
An advance is given to you when invoice factoring, and the leftover sum is placed in a reserve account. This occurs until your client pays the factor company, with a slight exception of a small fee for said service. Because rates vary based on industries (As an example: staffing, trucking, or construction), it’s difficult to tell what yours will be without getting a quote first-hand.
Why do businesses choose to factor their invoices?
If you’re looking for a way to fund your business, consider partnering with a factoring company. This flexible solution can help your business reach its full potential such as:
- Funds within 24 hours
- Long term contract is not required
- Easy approval
- No minimum volumes
- No hidden fees
- With our company, you are in control of which invoices you want to factor and when you need the funds.
A Regular Factoring Payment Can Keep Your Business Afloat
If you’re tired of feeling like you’ll never have enough money for your business, we can help. Put your faith in us to get the funding you need so that your company thrives.
- Use your business profits to pay yourself, cover taxes and other expenses
- Buy materials and improve technology
- To increase your income, take on bigger projects with companies that can pay you over a longer period of time
- Expand marketing efforts
- Hire more employees as well as attracting best talent
- Use early payment incentives from vendors to your benefit
Invoice Financing Services We Provide
Recourse & non-recourse services: The two categories of factoring services is called as recourse and non-recourse. If a customer does not pay their invoice after a specified timeframe with recourse, you will have to repay the advance; however, if non-payment occurs, the agency cannot be held accountable.
Non-recourse funding guarantees the factoring agency will cover any unpaid invoices instead of you, meaning late payments won’t fall on your shoulders. Usually, non-recourse financing has slightly higher fees than recourse because it is less risky for businesses. If you need help understanding which type of invoice financing best suits your company, we’re here for you!
Notification & non-notification factoring: We get it that you’re not overly thrilled about having to tell your customers you work with a factoring company. But don’t worry, we have expert account managers who will be more than happy to help come up with a solution that makes everyone comfortable.
Flexibility: You always get to decide how much you factored and when, trusting your gut on what’s best for your company. Invoice factoring adapts as your business grows, so the more you expand, the better your chance to receive additional funds!