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The Invoice Factoring Process


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The Invoice Factoring Process

  1. 1. By Factor Finders *
  2. 2. * *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!
  3. 3. * *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.
  4. 4. * *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.
  5. 5. * *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!
  6. 6. * *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 intact.
  7. 7. * *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.
  8. 8. * *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 today to begin!