What is Invoice Factoring?

What is invoice factoring?

There are very few forms of business finance that have existed as long as factoring, and yet invoice factoring (also known as invoice discounting, A/R factoring or receivables financing) is not part of the common business lexicon for most B2B small business owners in the U.S.

Invoice factoring is a centuries-old business financing tool that originated when bankers would provide manufacturers with an advance on goods so that manufacturers did not have to wait for products to travel to far-away lands before taking on new business.

According to Wikipedia: “Factoring is a financial transaction whereby a business sells its accounts receivable (i.e., invoices) to a third party – called a Factor – at a discount.”

The idea of invoice factoring might seem complicated, but it’s actually very simple. Accounts receivable are assets since they represent money that will – eventually – flow in to an organization and which they can then reinvest in growing their business. Organizations choose to factor invoices with a company like Corsa Finance, instead of waiting for customers to pay, in order to expedite organizational cash flow.

Fast, Secure and Easy

Complete the application process today and get approved to factor invoices within 2-3 days or faster.

1. Submit an inquiry online – it’s fast, easy, and free.

submit invoices for factoring receivables financing

2. Submit only those customer invoices you wish to factor.

get working capital to grow your business by factoring invoices

3. Receive funds the same or next business day via wire transfer on factored invoices.

speed up cash flow using non-recourse factoring, factoring with recourse or non-notification factoring

4. Speed up cash flow to avoid opportunity costs and stay focused on building your business.

How the Invoice Factoring Process Works

The biggest reason companies choose to factor invoices is to unlock working capital tied up in invoices and expedite organizational cash flow. Companies that factor invoices with us receive same-day and next-day advances on invoices factored with us for a small fee, called a factoring fee.

Get a Free, No-Risk Quote for Invoice Factoring

Expediting cash flow by factoring invoices can speed up business growth.

Sometimes businesses that invoice their customers wait weeks or even months to receive payment for invoices. So while they have assets on the books in the form of money owed to them via accounts receivable, they don’t actually have the ability to use that money to grow their business until the invoices have been paid.

Organizations that factor invoices with Corsa Finance pay just a small percentage to get access to 90% or more of the working capital that would otherwise be tied up in their accounts receivable on the same or next business day the invoice is factored.

That means that they have access to the working capital needed to meet payroll, fill the next customer’s order or money needed to take on bigger customers and larger orders, purchase equipment, expand inventory or services or execute other business growth strategies while we wait for the invoice to be paid, instead.

Apply or request a quick quote – either way there is no cost, risk or obligation. Find out how much working capital your organization could unlock by leveraging your accounts receivables as an asset.

What types of organizations factor through us?

While most business owners in the U.S. are familiar with other types of business financing (such as bank business loans, small business loans, private investors, angel investors, etc.), invoice factoring is not a term many are familiar with outside of a few industries where factoring invoices is an every-day practice.

Corsa Finance partners have decades of business financing experience with clients in a variety of industries; providing:

Temporary employer and staffing agency factoring
Factoring for specialty staffing agencies like nurse staffing, IT staffing, and security services
Supply chain factoring for manufacturers and distributors
Factoring for landscapers and other local residential and commercial service contractors
Contractors and businesses serving the energy and utility industries
Commercial cleaning companies
IT and web services

We work with factoring experts who will help you find the best solution for your situation.

Why Choose Invoice Factoring?

Organizations approved to factor invoices with one of our specialty financing partners can receive funding as early as the same or the next business day. Approvals are fast, and rates are competitive. With options for non-recourse factoring, factoring with recourse, and non-notification factoring, you have more options to choose what is best for your business.

We don’t tack on additional fees. Add-on and administrative fees can significantly increase the real cost of invoice factoring. When you factor through us, there are no hidden fees:

No application fees
No notification fees
No due diligence fees
No credit check fees
No reserve release fees

We want to earn your business as an invoice factoring client, so unlike many other factoring companies, we don’t require customers to commit to long-term contracts, nor do we impose requirements like monthly minimums. In addition, we pride ourselves on our personal approach and the care we take with our customer relationships.