Leverage the Benefits of Factoring Receivables
Your company provides a product or service to another business, government agency or another type of organization, or your goods or services are sold through another platform.
Upon fulfillment, either an accounts receivable invoice is created or promise of future payment is made to you by a third party (yes, retainers may also qualify!)
Instead of having to wait for weeks or months to receive payment, factor the invoice (or promised reseller payment) for a small fee, called a factoring fee.
In return, you get nearly immediate access to working capital in the form of an advance, which may be as high as 95% of the invoice or payment amount – or even higher, depending on factors such as the credit worthiness of your customer, how often you factor invoices, the size of the invoice, and more.
Receivables are a valuable asset! You can leverage unpaid customer invoices to grow your business.
Invoice factoring enables your company to expedite cash flow by turning the money customers owe you into available cash. Rather than waiting weeks – or months – for customer invoices to be paid, you can receive cash for factored invoices immediately.
Another benefit of factoring receivables is that it enables you to offer more appealing credit terms to your clients without slowing down organizational cash flow, which may provide your business with a competitive advantage.
Invoice factoring allows your business to enjoy immediate access to working capital and replenishes cash flow more quickly, which makes managing your day to day expenses much easier. You might also be able to leverage faster cash flow to negotiate better terms with your organization’s vendors and suppliers.
Plus, unlocking working capital expedites your cash flow on a more consistent basis, giving you the opportunity to confidently pursue bigger clients and new business opportunities.