Factoring - Service and Manufacturing Companies
Facing a problem because your clients take as long as 60 days to pay your invoices? Need to get paid sooner? Waiting up to 60 days to get paid is common in the business services and manufacturing industries. Most commercial sales are done on terms and customers often demand that you give them long payment terms. Unfortunately, few companies can afford to wait that long for payment. This often leads to working capital problems that can threaten the business. You can solve these problems using factoring.
Factoring accelerates the funds that are tied in your slow paying invoices and provides you with the working capital to pay employees and suppliers. It provides predictable cash flow, helping you manage and grow your company.
Factoring rates as low as 1.5%. Advances as high as 85%.
Click here for a quick quote or call (866) 720 1922.
(subject to monthly volume and industry).
How does factoring work?
Factoring accelerates the funds that are tied to your slow paying invoices. A factoring company advances the funds to your company using your invoices as security. The transaction closes once your customer pays in full. Most transaction follow this format where the funding of the invoice is done in two installments:
- You deliver product or service to your client
- You create an invoice and send it to the customer
- The factoring company advances about 80% of the invoice to you
- Once your client pays the invoice, you get the remaining 20% (less a small financing fee)
How does it benefit my company?
There are are number of benefits to factoring your invoices. They include:
- Increased liquidity to pay company expenses
- Increase ability to offer payment terms/credit to customers
- Flexible financing that grows directly with your sales
- Quick turnaround times
One of the biggest benefits of factoring is that it's relatively easy to get. Since the factoring company uses your invoices as collateral, the most important prerequisite is that you do business with reliable and reputable customers. This makes it an ideal option for small and growing companies that canít obtain bank financing but have a strong list of customers.
Get a factoring quote now! Questions? Call (866) 730 1922. Services in the USA and Canada.
Industries that we work with
You can get additional information at our Factoring Resource Center or by reading the following articles: