Invoice factoring is a multibillion-dollar industry, which continues to play a significant role in business finance. By using invoice factoring, businesses can now cover rapid growth costs, cash flow shortages, and other expenses while growing their business.
What Is Invoice
An overview of invoice factoring and how it can help your
An Overview of Factoring
Invoice Factoring is how small- to medium-
sized businesses can get cash quickly to cover
payroll, pay their vendors, improve cash flow,
make a major purchase, or expand into a new
How Does Invoice Factoring Work?
1. A company sells its current invoices to an
invoice factoring company for immediate cash
(in 24 hours).
2. The factoring company collects payment from
3. The company is able to proceed with
business without worrying about gaps in
What is the difference between
Non-Recourse and Recourse?
Non-Recourse Factoring: The factoring company takes on all
the risk of non-payment if a customer is enable to pay.
No risk (avoid costs associated with extending credit and
collecting bad debt)
Recourse Factoring: The company sells its invoices with
the understanding that they will buy them back if unpaid.
Costs associated with extending credit and collecting bad
How Does a Business Qualify for
As long as a business has monthly invoices from
reputable clients, it’s a candidate for invoice
Unlike banks that require long applications,
factoring relies on the creditworthiness of a
If a client is established and has a history of
paying their bills on time, the business more than
How Long Does the Invoice
Factoring Process Take?
Filling out and submitting an application
can be done in 20 to 30 minutes.
Once the client’s credentials have been
verified, the factoring company can
provide cash right away (in 24 hours).
Invoice factoring companies are built
Discover More About How
Invoice Factoring Works
Haven’t heard much about accounts receivable factoring? No
problem. Our invoice factoring experts are happy to
introduce you to this traditional business financing practice.
Business Factors & Finance at 888-659-0528
A small business financing expert can help you understand
how it all works, plus explain the benefits of factoring
They can answer your questions about the application
process, qualifying your clients, how much it will cost, when
you can get your money and more.
No cost to apply! Contact us today!