Invoice factoring is a business-friendly alternative to traditional finance methods that gives your company fast access to the working capital you need without taking on debt. Factor Finders’ invoice factoring programs provide you with the cash flow to help your company thrive.
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How does invoice factoring work?
Invoice factoring converts your open accounts receivables into immediate cash, saving you from waiting 60 to 90 days or more for payment from your customers. You have the flexibility to factor whichever and however many invoices you need to have cash on hand, following the short process below:
1. Send copies of your unpaid invoices to the invoice factoring company.
Invoices must be for completed work or delivered products. Invoice your customers as usual and email or fax a copy directly to the factor.
2. Receive a cash advance within hours.
The factor will verify your invoices and deposit as much as 90 percent of the invoice amount directly into your bank account.
3. Continue working while the factoring company collects.
Your factor will engage in active collection efforts, allowing you to focus on serving your customers.
4. Collect remaining funds.
When the invoices are paid, the factor will take their small factoring fee and deposit the remaining funds into your bank account.
What other benefits does invoice factoring provide?
When you begin invoice factoring, you are taking control over your cash flow. More importantly, you are beginning a relationship with your factor that will help your business in even more ways.
Credit and background verification
It is critical to work with reliable customers in order to build a solid payment history and turn your sales into revenues. However, credit and background checks are expensive to run and can quickly eat away your working capital. Your invoice factoring company will provide these checks at no additional charge to you, so you can be confident in the quality of your customers – and address any issues before they affect your business.
Credit building and repair
You can qualify for a competitive invoice factoring program even if your business credit is less than stellar. This is because factors will look at the credit history of your customers, not you, in granting approval. In addition, by factoring your open invoices you can not only cover your daily operating costs but also pay down current debt to rebuild your credit rating.
Money-saving opportunities
Competitive rates are not the only way invoice factoring can save your company money! By negotiating early-pay discounts or other payment incentives with your suppliers, you can put your rejuvenated cash flow to good use.
Moreover, depending on how much you factor you may qualify for a volume discount that will reduce your rates further! Ask your factoring account manager for more details.
How can my company begin invoice factoring?
If you are prepared to transform your company’s cash flow with invoice factoring, getting started is easy! All you need to begin the qualification process is the following:
- Articles of Incorporation
- Copies of the invoices you wish to factor
- Current invoice aging
- Customer list
Once you send in the required documentation, our invoice factoring partners can approve you for funding in as little as 3 to 5 business days! Companies of all sizes can qualify regardless of their financial or credit situations, because the factoring company will base its funding decisions on your customers’ creditworthiness!
Invoice factoring is an ideal option for companies in a variety of industries:
Ready to Begin Invoice Factoring?
Factor Finders’ team has the experience and expertise to create the ideal factoring program to meet your company’s financial goals. Our invoice factoring services are flexible and will adapt to the unique needs of your industry, whether you are just starting up or aiming for growth. With fast approval and industry-low rates, invoice factoring is the solution for your company.
