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  • Average monthly sales or amount of invoice to factor

Beyond Business Loans – Alternative Financing Turns Your Assets into Working Capital

Debt Financing, Equity Financing and Alternative Financing

Business financing is the act of providing money for business activities, startups, expansion, purchases or investments. There are three basic types of business financing: debt financing, equity financing and alternative financing.

Debt financing (borrowing funds such as business loans, credit cards and credit lines) and equity financing (selling a portion of ownership interests in exchange for capital) are the two traditional types of business financing.

Alternative business financing can take many different forms, including the financing alternatives we offer: invoice factoring and commission advances. Other types of alternative business financing include options such as equipment financing, retail merchant cash advances, peer-funding, kick start funding, angel investing and crowdfunding.

Access the working capital needed to fuel business operations and growth activities.

1. CREATE AN INVOICE

Generate a customer invoice and factor it on the same day.

2. GET AN ADVANCE

Get free funding on factored invoices up to 90% of the invoice amount in 0-2 business days.

3. GROW FASTER

Use expedited cash flow to keep pace with expenses or reinvest in growth more quickly.

Alternative Financing — Invoice Factoring Turns Unpaid Invoices into Working Capital

Our financing programs can give aspiring and current business owners access to the working capital needed to fuel business operations and growth activities.

Invoice factoring (also known as receivables financing, invoice financing or AR factoring) is a business finance tool that expedites cash flow by leveraging a company’s assets: namely, its unpaid receivables.

Instead of waiting on customer payments, a business can sell the invoice to a factoring company and get immediate advance of a high percentage of the invoice total, for a small fee (called a factoring fee). Once the customer has paid the invoice, the business also receives any amount held in reserve.

Assuming a factoring fee of 5%, and an advance rate of 90%, here’s how it would work:

Timeline
Day 1 Generate a $15,000 client invoice and factor it
 – Same Day Receive an advance of $13,500 (90% advance)
Factoring company earns $750 (5% factoring fee)
Day 30-45-90+ Your company receives the $750 reserve amount after the invoice is paid

When a company factors an invoice, they sell the invoice to an invoice factoring company. Instead of waiting weeks or months for customers to pay, they can factor the customer invoice and receive an advance on the invoice within 1-2 days.

Find out more about receivables financing to see how much working capital you could unlock by factoring – or selling – customer invoices instead of waiting on payments.

How does invoice factoring work – request more information:

  • Average monthly sales or amount of invoice to factor

Why do companies factor invoices and what kind of businesses can use this alternative financing tool?

Factoring clients often cite one or more of the following reasons as central to their decision to speed up organizational cash flow by factoring invoices:

  • A desire to take on bigger accounts, fill bigger orders or take on new business more quickly
  • Faster cash flow to facilitate faster business growth
  • Cash flow is not keeping pace with payroll or other operational needs
  • Customers had extended terms or take 30 or more days to pay
  • Company was newly established and so was not yet eligible for other financing programs
  • A desire to negotiate discounts for early payment with their vendors or suppliers

We offer competitive factoring rates, high advances, fast processing and funding as well as a high level of professional customer service — just what you would expect from the best invoice factoring companies.

Nearly any type of business that invoices its customers for payment on terms may be able to expedite cash flow by factoring invoices instead of waiting for customers to pay. Factoring provides a fast, flexible alternative financing program that expedites and improves cash flow, giving the organization access to the working capital needed for sustaining and growing a business.

Factoring clients come from many different industries where invoice factoring is commonly used to expedite cash flow, including:

  • Staffing and temporary employment agencies (security services, nursing, etc.)
  • Business consulting and B2B business services
  • Trucking, transportation and logistics
  • Supply chain distributors and manufacturers
  • 3rd party sellers like Zulily vendors and Amazon merchants
  • Vendors selling online or in stores through Costco, Sams Club, Walmart and other mass retailers
  • Textile, clothing, accessories and other wholesalers
  • Oil and gas (and all gas and oil field contractors)
  • Energy and utilities companies and contractors
  • Wine, beer and spirits
  • Government contractors and vendors
  • Recycling and waste management – and many more

Ready to find out more about our programs? Start by requesting a free, no-obligation quote and get answers in 24-48 hours – or even faster!