*Invoice Factoring is an alternative funding solution for
businesses. Instead of lending money at high interest
rates, factoring companies buy your outstanding invoices
and provides your firm with a cash advance in exchange.
The cash is derived straight from the bills your customers
haven’t paid, so there’s no limit on how much cash you
receive in return. With low fees, flexibility amongst
multiple industries, and high advance rates, factoring is
the answer to your cash flow dilemmas!
*Your customers may be used to paying on extended 30, 60
or 90 day terms and through the factoring process, you’ll want
to continue servicing them. After you’ve provided the
products and/or services, you can choose whether you want
to wait for payment or submit the invoice to factor. If you
choose to factor, submit the invoice and customer
information to the factoring company. The relationship you
hold with your customers won’t end and isn’t altered in any
way when you decide to factor those invoices.
*Now that your customer has been serviced,
their creditworthiness is checked for approval.
That’s one of the great advantages of factoring:
approval is based primarily upon your customer’s
credit standing, not yours. That means that even if
you’ve had financial struggles in the past, poor
credit, bankruptcy or are a newly established
company, your firm can still be funded.
*Once your application is approved and your
customers are proven as creditworthy, your business is
advanced up to 90% of the invoice value. The
remaining portion is held in reserve until payment is
received. How your company utilizes that cash is up to
you. So if you need to buy new equipment, need to
cover payroll, or are trying to create overall growth for
your business, then you can do it all!
*As your firm uses its newfound cash, the
factoring company engages with your customer to
collect payments. This is handled in a professional
and courteous manner in order to keep the
business relationship you have with your clients
*A small percentage of the invoice amount is held
in reserve until your customer pays their bill
through the factor. Upon full repayment, the
factoring company will subtract their fees and
return the remaining balance to your company.
*The invoice factoring process begins once you
contact Factor Finders and complete one of our
applications. You can call us at 1-855-FACTOR-1
and visit our website at www.factorfinders.com
today to begin!