If you have any questions about Invoice Factoring please don't hesitate to contact us. Invoice Factoring is a great for companies to manage their cash flow and working capital by knowing when they will be getting cash for their invoices (overnight).
With invoice factoring (also known as Invoice finance), a business can advance up to 80 of the value of an outstanding invoice, with the final 20 (minus fees) paid to you once your client has paid the invoice. But, not every company can get a line of credit and this is where we come in. Invoice factoring is the advanced payment of outstanding funds that are owed to you by your customers. And it has to be said that Lines of Credits are very helpful with companies that have large inventories that turn over slowly, and they are usually cheaper in the long run. Therefore, the factor is responsible for collecting payments from your customers. In other words, the factor purchases your invoices. 250,000 & up to 10 million Facilities Set up in 3 to 5 working days No facility fees - No Audit Fees No up-front fees - No hidden fees No Monthly Minimums Financing Rates at 0.69 - 1. With invoice factoring, you receive a lump sum payment from the factor based on the value of the invoice. WHY CHOOSE US FOR INVOICE FACTORING Accounts Receivable Financing is our Business. Yeah, okay, the last one probably isn't such a bad thing. The amount of your line of credit is determined by the value of your invoices. Considered a Debt on booksĭon't have to play golf with us. Based on All Company Assetsįree Credit Checks on New Customers. Non-Recourse Available.Always Recourseĩ0+ Days on Receivables okay. The process for invoice factoring is generally as follows: You send your invoices to your factoring company. Instead, the factor will hold a small reserve of between 5 30 of the invoice value until the customer has paid.
Invoice factoring vs line of credit full#
However, the business won’t get the full cash amount of their invoices. Let's take a look at some of the differences between a normal Invoice Factoring program and a normal Line of Credit that you may get from a bank. Invoice factoring starts off with a simple transaction when a business sells outstanding invoices to a factoring company.
Invoice factoring vs line of credit series#
This is Part IV in a series about Invoice Factoring:
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