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

1. Your business sells goods or services and issues an invoice.
2. You sell the invoice to a factoring company.
3. The factoring company advances you a percentage of the invoice value (typically 70-90%).
4. Your customer pays the factoring company directly.
5. 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.