What is is invoice factoring?
Invoice factoring can get your invoices paid in as little as one day, providing you with financing to pay employees, suppliers and rent. More importantly, factoring your invoices eliminates the uncertainty of when you’ll be paid, allowing you to confidently manage and grow your business.
How does invoice factoring work?
Factoring invoices is very simple and helps you get reliable and stable cash flow. It can easily be integrated to your business and works as follows:
- You deliver your product/service to your client
- You send an invoice to your client and send a copy to us (the factoring company)
- We advance you up to 90% (the remaining 10% is used as a reserve)
- You get immediate use of the money to pay suppliers, taxes and employees
- We wait to get paid by your customer
- Once we get paid, we rebate the 10% reserve (less a small fee)
Rates as low as 1.5%. Advances as high as 90%. Get an instant quote now:
Click here for an instant online quote. We can offer factoring rates as low as 1.5% (based on industry, volume and location). You can also call us at toll free at (877) 300 3258.
Invoice factoring costs
Factoring your invoices can be very affordable, with the average monthly discount being between 1.5% and 3.5% per month. There are two major variables that we consider when determining the cost of a factoring transaction. They are the size of the transaction and the credit quality of your clients. Larger transactions with reliable account debtors will usually qualify for better terms - lower costs and higher advances. If you’d like to get an instant cost estimate, please fill out factoring quote form or call us at (877) 300 3258.
Qualifying for invoice factoring is easy and quick
To qualify for invoice factoring, you must sell products or services to other businesses (or government agencies) who pay their invoices reliably in 90 days or less. Setting up an invoice factoring service takes 3 to 5 days and most businesses, established or startups, can qualify easily. The biggest requirement is that your customers are reliable payers.
In summary, to qualify for invoice factoring your business must:
- Sell products or services to other businesses or the government
- Have invoices that get paid in less than 90 days
- Be free of major problems
Want to learn more about invoice factoring?
If you want to learn more about invoice factoring please visit our Invoice Factoring Resource Center. The resource center contains a number of articles on business finance and invoice factoring financing. Here are three of the most popular articles on factoring invoices:
- What is invoice factoring?
- Invoice factoring basics
- How to finance your growing business
Click here for an instant online quote. We can offer factoring rates as low as 1.5% (based on industry, volume and location). You can also call us at toll free at (877) 300 3258.
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