What can your business do with access cash flow? Get your invoices paid instantly with invoice factoring. We are dedicated to helping your business find the best invoice factoring deal available. The benefits of A/R factoring include:
-Funds within 24 hours
-Easy approval
-No hidden fees
-Faster than banks
Many factors do not require that you sell all of your invoices each month, allowing you to sell as needed. This way you don’t pay for money you don’t need. Together you and your factor will agree what to sell each month.
If you have receivables in the amount of $6,000 to over $6,000,000, you can obtain $5,000-$5,000,000 against those invoices up front. After the invoices get paid, you will get a rebate for the balance, minus a factoring fee.
Invoice factoring is non-recourse funding, meaning if your customers do not pay the factoring company, you are not liable for it. The factor assumes the credit risk, and the risk that your customers don’ t pay.
Due to the mis-match between the timing of income and expenses, many business owners are forced to cover costs with a credit card. The problem with credit cards is that the interest accumulates, costing way more than factoring.
While it’s good to have partners in your business, taking on equity to alleviate a short-term capital need is the worst decision you can make. The reason why is because selling equity results in forfeiting a portion of profits for life.
Typical turn around time for bank financing is 4-6 weeks, which could put a business out if time is of the essence. Operating with a sense of urgency, turn around time for factoring companies is 3-5 days to funding.
Request a free quote and a funding specialist will call you same day to learn more. While on the phone with you, they’ll ask you the right questions to make sure you get the best match.
After you speak with a funding specialist, you will be introduced to 1-3 funders that best fit your business needs, either via direct dial or e-mail. We’re happy to stand by your side through the process.
You’ll have to submit an application for the funder you decide to proceed with, and send each one an A/R aging schedule. This will allow them to approve your customers for credit and fund you.
Once your customers are approved for credit, the funder will send the final funding amount and wire you 80% of the value of all qualified receivables the same or next day.
The funder will have you contact your customers with a very friendly, legal notification stating that you sold your invoices to the funder, and to remit payment of the invoice to the funder until further notice.
Once your customers pay the invoices to the funder, the funder will remit the balance to you (i.e. 20%), minus their factoring fees, 15-30 days later. This is called the reserve, and a small amount is usually held back until the relationship ends.
If you’re in need factoring for one month, or one invoice only, we can also find you spot factoring, which is a one-time sale of your invoice.
Many businesses struggle with growth simply because they have to pay their expenses before collecting revenues. Factoring allows them to accelerate their revenues, to match expenses and grow without further investment.
As a business owner it’s hard to realize profits when your model requires that you keep investing money. With factoring, you can realize profits that are tied up in your business by using the factor’s money for growth instead.
When demand for your product exceeds the supply you have on hand, you’re leaving money on the table. Factoring allows you to finance inventory to immediately off load to customers waiting to pay you for products.
If your busy season is right around the corner, now is the time to spend on marketing because you know the return on investment will be there. Factoring allows you to plow future revenues into marketing today.
The most important aspect to qualify for A/R factoring is having invoices from credit worthy customers. Your time in business, in theory, doesn’t and shouldn’t matter.
Because factoring companies only look at the credit of your customers, your personal credit score doesn’t matter. No FICO, no problem – you can still sell your invoices at the same price anyone else would.
Your business entity must be free and clear of any liens or security interests from other financing institutions. If you have any tax liens or security interests, you may need to have them removed prior to factoring.
A/R factors are very credit based. Their main focus is the creditworthiness of your customers. Do they have good business credit? What is their ability to pay? This is what qualifies your business for factoring.