WHAT IS FACTORING?
Invoice factoring is the selling of invoices or accounts receivable to a third party company at a discount in exchange for working capital. This form of financing is ideal for businesses that get paid after the initial date of purchase for goods or services and have an immediate need for cash. Prior to signing any factoring agreement, understand the two types of factor contracts and their distinct terms and fees.
- Immediate funds to help with the needs of today
- Based on Credit of Invoiced Business
- Fees based on time for invoice to be paid off
IS INVOICE FACTORING RIGHT FOR YOUR BUSINESS?
Invoice factoring offers value for business owners with cash flow challenges awaiting payment for completed work. Invoice factoring is particularly useful if your customers have better credit than you. This form of financing removes a percentage of profits which can hinder the sustainability of the business if relied on too heavily.
Invoice factoring can be more extensive then other options but allows your business to recieved future funds to help with immedaite needs. To apply you need:
- 600 + Fico
- 1 + years in business
- Annual Revenue of $130,000 +
- 3 most recent business bank statements
- Outstanding Invoices