Services

Invoice Factoring

Invoice Factoring is definitely one of the most valuable tools used by small and mid-size business to obtain business funding.

This is particularly true for newer businesses during their start-up phase when traditional lenders typically dont lend them the working capital they need.

Invoice Factoring provides several advantages to younger businesses. In addition to being used as a method of business financing, it permits entrepreneurs with the ability to step ahead of their competition and grow their mid-size and small businesses at exponential growth rates.

The actual power of invoice factoring is through its simplicity.

Invoice Factoring allows your small or mid-size business the ability to offer your customers with attractive terms of payment for goods and services that your business deliver or provide.

Your business can offer your customers terms of payment of 30, 45, or 60 days for goods and services. Often your competition cannot offer nor match this extension of credit.

The typical small business cannot offer these type of terms as it would cause considerable cash flow problems and could cripple the business. These difficulties are overcome by utilizing the services of a competent factor.

Invoice Factoring is quite simple - you forward your factoring invoice on a daily or weekly basis to your factor for an immediately issued cash advance.

Your business can focus on what it does best - Generate new business and customers. Instead of your business, let your factoring company wait for payments submitted by your customers.

Even though numerous banks provide factoring services, factoring companies are often considered to act similar to conventional lending institutions and banks.

Factoring companies do not actually lend your business money. The factoring company purchases the accounts receivables that your business creates. A factoring company is not directly interested in your business credit score, borrowing history nor your personal guarantee.

Instead an invoice factoring company is more concerned about your customers creditworthiness. Your customer is the company that will pay your invoices. That is why the factor is not directly interested with the credit reports issued on you or your business.

Younger businesses that are less than 5 years old are often considered by banks to be non-lendable due to lack of a proven credit history. That is why companies consider factoring invoices to be an advantageous tool to their business.

In addition to providing business invoice factoring, factors can also provide additional valuable collection and accounting services for your business.

Through their expertise in the management of accounts receivables, factors can collect your outstanding receivable balances, provide aged accounts receivable reports, evaluate customer credit worthiness and collection reports while performing invoice factoring services.

In addition, factors may provide bi-monthly or monthly detailed statements of account to your customers.

Invoice factoring can also provide these additional Factoring Benefits