Invoice Factoring
Invoice factoring can be a strategic financial tool for small businesses needing quick access to cash
Factoring allows your business to sell its invoices at a discount to a third party to receive immediate funds
How Factoring Works
Invoice factoring involves selling your accounts receivable (invoices) at a discount to a factoring company. In return, you receive an immediate advance of typically 70% to 90% of the total invoice value, with the remaining balance (minus fees) paid once your client settles the invoice.
Benefits of Invoice Factoring for Small Businesses
Immediate Liquidity
Gain access to working capital without waiting 30, 60, or even 90 days for customer payments.
Growth & Expansion
Use the immediate funds to take on new projects, purchase inventory, or expand operations.
Credit Score Irrelevant
Factoring decisions are based on your clients' creditworthiness, not your business's credit score.
Choosing the Right Factoring Company
Reputation
Look for a factoring company with a strong reputation for fairness and good customer service.
Fees
Understand all potential fees involved, including any hidden charges.
Contract Terms
Review the contract terms closely, paying attention to the length of agreements, any minimum volume requirements, and the notice period for terminating the agreement.
Industry Experience
Prefer companies familiar with your industry, as they will be more understanding of your business's unique needs and cycles.
Implementing Invoice Factoring in Your Business
check_circle
Evaluation
Access your business's financial needs and how invoice factoring can address them.
check_circle
Research
Investigate and compare several factoring companies.
check_circle
Negotiate & Integration
Negotiate terms that best fit your business's needs. Then, seamlessly integrate invoice factoring into your existing financial workflows.
check_circle
Management
Regularly review your factoring arrangements to ensure they continue to meet your business needs.
INVOICE FACTORING OFFERS A VIABLE SOLUTION FOR SMALL BUSINESSES LOOKING FOR FLEXIBLE AND IMMEDIATE FINANCING OPTIONS.
