BUSINESS LOANS

Factoring Financing

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Are you a small business looking for working capital? Are your clients’ government or commercial businesses with excellent credit but take too long to pay? Is bank financing not an option? If you answered yes, non-recourse invoice factoring is the solution to fuel your business. Receive an advance up to 90% of the accounts receivable amount the day the work is complete, or the service is performed. When you factor your invoices, you get the cash flow you need – fast and affordable!

Who can afford to wait 45 to 75 days for payment? Invoice financing is the solution to meet payroll, pay taxes, buy raw materials, pay suppliers or cover critical expenses to keep your business functioning.

What Is Invoice Factoring Compared to Invoice Financing?

Invoice Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (invoices) to a factoring company at a discount. Invoice factoring should not be considered a loan but a financing solution to keep your cash flow running.

A business will sometimes factor its receivable assets to meet its present and immediate cash needs. It might also factor their invoices to mitigate credit risk. Factoring is commonly referred to as accounts receivable factoring, invoice factoring and sometimes erroneously accounts receivable financing.

Invoice Financing is a type of asset-based lending, and there are two different types. The first type is when the business opens a line of credit leveraging their good accounts receivable as collateral. The second is when the business sells its accounts receivable to an invoice factoring company. When you sell your accounts receivable, either the business or the factor has the options of taking the credit risk.