Get An Advance On Your Invoices With Invoice Financing

Get An Advance On Your InvoicesUnder normal circumstances, a company that accepts invoice payments would have to wait between 30 and 90 days to collect money owed to them. While being able to make payments in this manner is convenient for customers, it can be financially difficult for the company offering it. This is because they have already provided the labor and materials necessary to provide the service or goods. As they wait to receive payment for work they have already completed, they still have bills that must be paid. If they do not have incoming payments on a consistent basis, this can become burdensome. Invoice financing is an effective workaround. It allows companies to receive the most of the money owed to them via invoices right away.

Invoice financing is not a brand new concept. However, it has been receiving much more attention and interest lately, largely because traditional commercial financing options are waning. For example, it has become increasingly difficult to receive a bank loan.

Invoice Financing VS Other Finance Options

Invoice financing is much less expensive than other commercial finance options. Bank loans can be costly when considering the amount of interest typically charged. Even more costly are credit cards. This can quickly cause a company to rack up a mountain of debt that may be incredibly difficult to repay. This is a threat, especially so, too small businesses who may utilize credit cards to make ends meet. Invoice financing is a very good way for a company to receive an advance on their invoices.

A Factor is a company that purchases invoices or receivables at a discounted rate. This allows companies to receive upfront monies for invoices that may not be due until 90 days. As stated before, waiting this amount of time to be paid can be problematic. In some cases, it may make it difficult for a business to meet their financial obligations. It can also stymie the growth of a company. Particularly because they may not be able to purchase advertising or hire a marketing specialist who might be able to help them grow their business.

Why Factoring?

The average price that a factor will pay for invoices is about 70 to 90 % of their full value. These monies are given to the company right away and can be accessed as little as 24 hours. Generally speaking, no longer than seven days. A company can use this cash for whatever they want. There are no restrictions.

After the factor has paid for the invoices, they will then collect them and return the money to the company that originally sold them. This will not include their fees and any money they already paid for the invoices. Invoice financing is an excellent option for companies that are unable to wait for the standard 30 to 90 days to receive payment for work they have already completed for their clients. As long as their customers have good credit histories, it is possible to receive an advance on those outstanding invoices regardless of their own personal credit history or the amount of time they have been in business. This makes it a good option for those with an average-to-poor credit or who have just opened their doors.

  • Get Cash Today

    Best Factoring CompanyGet the Cash You Need Today

    Just fill out this quick & easy form!

  • This field is for validation purposes and should be left unchanged.
Get Cash Today
  • Quick Contact Form
  • This field is for validation purposes and should be left unchanged.

Back to Top

Best Factoring Company

Get Started Immediately