Fast Invoice Factoring
Invoice factoring is a financial solution that can provide quick cash flow for businesses by selling their accounts receivable to a third party at a discount.
How Invoice Factoring Works
- Your business sells goods or services and issues an invoice.
- You sell the invoice to a factoring company.
- The factoring company advances you a percentage of the invoice value (typically 70-90%).
- Your customer pays the factoring company directly.
- You receive the remaining balance, minus the factoring fee.
Benefits of Fast Invoice Factoring
- Immediate access to cash
- Improved cash flow
- No debt on your balance sheet
- Outsourced credit control and collections
Choosing a Factoring Company
Consider:
- Advance rates
- Factoring fees
- Contract terms
- Industry expertise
Types of Invoice Factoring
- Recourse Factoring: You’re responsible if your customer doesn’t pay.
- Non-Recourse Factoring: The factor assumes the risk of non-payment.
Industries That Benefit from Factoring
- Manufacturing
- Wholesale
- Transportation
- Staffing agencies.