Invoice Factoring
Payment up front is always ideal, but isn’t always possible. Invoice factoring can provide working capital in as little as 24 hours so your small businesses can fill in the gaps between issuing an invoice and receiving payment.
What is Invoice Factoring?
Invoice factoring is a financial solution that helps businesses improve cash flow by selling their outstanding invoices to a factoring company at a discount. Instead of waiting 30, 60, or even 90 days for customers to pay their invoices, businesses can receive immediate funds to cover operating expenses, invest in growth, or take advantage of new opportunities.
How Does It Work?
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1
Submit Invoices
The business submits its unpaid invoices to a factoring company.
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2
Receive Advance
The factoring company advances a percentage of the invoice value—typically 70% to 90%.
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3
Customer Payment
The customer pays the invoice directly to the factoring company.
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4
Receive Remainder
Once the customer pays, the factoring company releases the remaining balance, minus a small factoring fee.
Why Choose Invoice Factoring?
Quick Access to Cash: Get funds without waiting for invoice payment terms to expire. No Debt Incurred: Unlike loans, invoice factoring is not a debt; it's a sale of assets. Flexible Financing: Factoring is available for a wide range of industries and business sizes. Growth Support: Use immediate cash to take on more projects, purchase inventory, or expand operations.
Benefits for Your Business
Improve Cash Flow: Smooth out your cash flow to manage day-to-day operations efficiently. Reduce Credit Risk: The factoring company assumes the risk of customer non-payment, providing you with peace of mind. Focus on Growth: Free up time and resources to focus on what you do best—growing your business.
For Investors
Invoice factoring presents a unique investment opportunity. By providing capital to factoring companies, investors can earn a steady return, often with lower risk compared to other financial products. The predictable cash flow from paid invoices makes invoice factoring an attractive option for those looking to diversify their investment portfolios.
Why Invest in Invoice Factoring?
Stable Returns: Earn consistent returns from short-term, low-risk investments. Diversification: Add a unique asset class to your investment portfolio. Lower Risk: Invoice factoring is backed by receivables, offering a level of security not found in other investments.
Get Started Today
Whether you’re a business looking to unlock cash flow or an investor seeking a stable return, invoice factoring offers a win-win solution. Contact us today to learn more about how our invoice factoring services can benefit you.