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What is accounts receivable invoice factoring? |
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Invoice factoring is the purchase of your current, valid
accounts receivables for cash. You send us the invoice and we
front a percentage (70-90%) of the cash at the time the invoice
is received. We collect the remainder of the invoice and remit
it to you, as received, less our small invoice factoring fee.
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What are
the fees for invoice factoring? |
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Fees are determined by the total amount of
invoices, the average size of the invoice and the industry the
invoice comes from. Typical fees range from 2-4% of the
invoice. visit our
pricing page for
a more detailed breakdown.
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How long does set-up and funding take? |
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Set-up takes a few days. Once you are set up, you generate an invoice, send a copy to us, and funding
can often take place within 24 hours.
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Do I, or does my firm, need good credit to
factor? |
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The short answer is no. With invoice factoring, your
client's credit is more important than yours or your firm's.
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Does being a start-up company prevent
me from factoring? |
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Absolutely not. The age of your business has no
bearing on the soundness of your invoices. No matter how long
your company has been in business, you can take advantage of
factoring.
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Does my customer know I am factoring? |
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Yes they do, however, unlike the old days,
factoring is a way of life in the business world today and is a
widely accepted practice. Our team acts as your collection team
and your customers are handled courteously and professionally.
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What will my customer think about us using
factoring? |
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It turns out that many of our customer's own
clients are also factoring their invoices so they really think
nothing of it. Factoring is a widely accepted form of doing
business today and it really isn't a problem.
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How is factoring different from a bank
loan? |
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Factoring is not a loan. It is a financial
transaction, whereby the factoring company purchases your
invoices for a small discount.
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