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Invoice Factoring Expedites Business Cash Flow
Invoice factoring is a business finance tool that can provide your organization with almost immediate access to money owed by your customers, without waiting 30, 60, 90 days – or even longer – for the invoices to be paid.
Instead of waiting for your customers to pay, you can factor an invoice with a factoring company for a small fee (called a factoring fee) and receive an immediate advance – as much as 95% of the invoice amount.
Though the need for expedited or more consistent cash flow is the reason most companies decide to factor invoices, some of the other common reasons cited by our clients include:
- Need for working capital to fuel business growth
- Working capital can be leveraged for better terms with suppliers
- Customer accounts with generous terms, often 30-90 days
- Need working capital to take on larger accounts or big orders
- Slow-paying customers
- Better ability to meet operating expenses and payroll
- Capital expenditures like equipment purchases, repairs, renovation or expansion
The practice of invoice factoring is centuries old and has played an important role as a means of business finance. Any organization, of any size, that provides goods or services to other businesses, government agencies or other commercial organizations on payment terms may be able to factor receivables in order to improve cash flow and unlock working capital.
We offer several different types of invoice factoring, including non-recourse factoring, non-notification factoring, factoring with recourse, spot factoring, and micro-factoring. Scroll down to read more about the different types of invoice factoring that could be used to speed up business cash flow in your organization.