• Expedite Cash Flow Using Invoice Factoring

    Unlock working capital tied up in customer invoices – without waiting for your customers to pay.

    invoice factoring

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Invoice Factoring Expedites Business Cash Flow

Are You Waiting For Your Money When You Don’t Have To?

Use invoice factoring to provide your organization with almost immediate access to money your customers owe, 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.

Why Businesses Need Factoring

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

Many Options To Choose From

Invoice factoring, a centuries-old financing tool, plays an important role for businesses needing access to the money owed to them. Instead of waiting, companies of any size that provide goods or services to other businesses, government agencies, or other organizations can factor invoices to improve cash flow and unlock working capital.

Explore several 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 speed up business cash flow in your organization.

Invoice Factoring – How the Process Works

1. REQUEST A QUOTE

Apply for invoice factoring services that are a good match to your business goals and preferences.

2. FACTOR INVOICES

Go from approval to your first funding in as little as 24-48 hours — or even faster.

3. SPEED UP CASH FLOW

Get fast, competitive advances on factored invoices to expedite cash flow and grow your business faster.

Invoice Factoring Calculator

Find out how much working capital unlocks immediately by factoring invoices on the same day they are generated instead of waiting weeks — or months — for customer payments.  Ask about factoring fees as low as 5% (or even lower with volume discounts!) and competitive advance rates as high as 95%, with no-to-low holdbacks.

Industries where invoice factoring is commonly used to expedite cash flow include:

  • Staffing and temporary employment agencies (security services, nursing, etc.)
  • Business consulting and B2B business services (accounting, marketing, IT, social media management)
  • Trucking, transportation, and logistics
  • Catering companies
  • Security companies
  • Property management and maintenance companies
  • Supply chain distributors and manufacturers
  • Online merchants
  • Janitorial and commercial cleaning companies
  • Companies selling to government agencies (historically known as slow-paying accounts)
  • Vendors selling through Costco, Walmart, Overstock, Wayfair and other mass retailers
  • Textile, clothing, accessories and other wholesalers
  • Oil and gas (and all gas and oil field contractors)
  • Technology service providers
  • Energy and utilities companies and contractors

And others—feel free to ask! Nearly any company that invoices business customers or waits more than 15 days to get paid improves cash flow by factoring invoices. Take the first step and request a no-cost, no-obligation financing proposal today.

*And if your company sells to consumers who pay with debit or credit cards, find out how a cash flow loan could benefit you!

How the Invoice Factoring Process Works

Invoices factored are typically funded on the same day – up to 95% of the face value of the invoice.

If you invoiced a customer for $4,500 but want to access the funds without waiting weeks – or months – for your customer to pay.

Assuming a factoring fee of 5% and an advance rate of 95%, here’s how it would work:

Overview
Day 1 – Generate a $4,500 client invoice and factor it
 – Day 2-3 Receive an advance of $4,275 (95%)
Factoring company earns $225 (5% factoring fee)
Day 30+ Factoring company waits to get paid while you stay focused on growing your business

Request more information about Invoice Financing

How Can You Benefit from Invoice Factoring?

Partner with an invoice factoring company and expedite payment of accounts receivable invoices. Instead of waiting on customer payments, send the invoice to the client and the factoring company. This lets your business receive an advance of up to 95 percent of the face amount of the invoice right away.

Factoring receivables lets you focus on growing your business rather than chasing invoices or performing collections. By speeding up cash flow, you can gain immediate access to working capital, allowing you to reinvest in your company much more quickly.

Factoring receivables positions your business to make the most of emerging opportunities. Organizations that factor invoices expedite cash flow. They have more flexibility to meet operational expenses. They may extend more generous payment terms to their customers as a competitive advantage, gaining even more business. Plus, they can reinvest working capital in their business more quickly to expand, service larger accounts, introduce new product lines or take on new customers.

There are also additional benefits for businesses that choose non-recourse invoice factoring over factoring with full recourse. Non-recourse factoring is less common in today’s economy because non-recourse factors assume the credit risk for the invoices they purchase. When you factor invoices with a non-recourse factoring company, you may be able to minimize financial risk from bad debt.

Use Invoice Factoring to Its Fullest Potential

Low factoring fees and competitive advances are not the only reasons you should consider invoice factoring services. Corsa Finance’s partners will do their best to help you get a better factoring agreement and a better value for your money.

You want an invoice factoring company that will help you go from approval to funding quickly and look for reasons to say “Yes!” when you submit invoices for factoring. Look for low factoring fees and flexible terms, such as:

  • No long-term contracts
  • No monthly minimums (you choose when and how much to factor)
  • Retain control of billing your customers, or let the factoring company do the work
  • Non-recourse factoring (the factoring company assumes the credit risk)
  • Spot factoring and micro-factoring – small invoice factoring welcome!
  • Credit checks to help you vet customers
  • No application or due diligence fees
  • No schedule processing, notification, or other hidden fees

Even more importantly, we promise a high level of customer service to our factoring clients. We want you to work with a financing partner who understands your preferences and unique business needs, saving time and reducing the stress of managing receivables.

Non-Recourse Factoring

There are two basic types of receivables financing – non-recourse factoring and factoring with full recourse. With both types of receivables financing, there are three parties directly involved:

  • An organization that invoices its customers for payment (the “client”)
  • The customer responsible for paying the invoice (the “debtor”)
  • A receivables financing company that factors the invoice (the “factor”)

Who Risks Non-Payment from the Client?

Non-recourse factoring companies assume the credit risk for invoices they factor. This means that if a customer cannot pay due to insolvency, the non-recourse factoring company absorbs the loss, not the client.

Non-recourse factoring companies rarely mandate that clients buy back an invoice. This would generally only occur in the case of a customer dispute, such as when the customer did not receive the shipment, refused delivery, or returned it. Read more about non-recourse factoring.

Factoring with Recourse

Full recourse factoring (or factoring with full recourse) leaves the client responsible for the creditworthiness of its debtors. In this case, the factoring company retains the right to sell an invoice back to their client if a debtor is unable to pay for any reason—even if the invoice simply goes unpaid for a short period of time.

Who Risks Non-Payment from the Client?

When working with a company that factors with full recourse, the client may even still be responsible for collecting on the invoice as well as paying any legal fees the recourse factoring company accrued while they held the customer invoices.

Because the factoring client retains the financial risk from bad debt, factoring fees may be lower when factoring with full recourse (vs. non-recourse factoring). Read more about factoring with full recourse.

Non-Notification Factoring

Non-notification factoring minimizes contact between the factoring company and the factoring client’s customers. Factors often use of white-labeled forms featuring the client’s brand in customer invoices, statements and correspondence.

When the customer pays factored invoices, payors send payments to a unique lockbox or pay electronically into a deposit account belonging to the factoring company. So, it looks to the paying company that they are paying the factoring client directly. This creates a seamless experience that protects and reinforces the factoring client’s brand.

Read more about non-notification invoice factoring.

Spot Factoring

Spot Factoring (aka Single Invoice Factoring) differs from typical invoice factoring in that a business is factoring on a one-time-only basis. It does not need to establish a long-term relationship with a factoring company.

Factoring fees might be higher when spot factoring, but not necessarily. Factoring rates are typically impacted by the credit rating of the customer being invoiced.

Read more about spot factoring, or small invoice factoring.

Micro-Factoring

Micro-factoring is very similar to spot-factoring. But while spot factoring (or single invoice factoring) might involve an invoice of any amount, micro-factoring is generally factoring for small invoices. Companies can choose to factor a single invoice or a series of smaller dollar amount invoices.

Very few factoring companies offer micro-factoring – or factoring for small invoices. We are pleased to not only offer but welcome micro-factoring or factoring for small invoices, as well as for invoices of any amount.

All 9 /Accounting and Finance 0 /B2B 0 /Business Strategy 3 /Cash Flow 3 /Corsa Finance 8 /e-Commerce 0 /Entrepreneurs 0 /Hiring and Recruiting 0 /Invoice Factoring 3 /Leadership 1 /Marketing 0 /Organizational Culture 0 /Receivables Financing 2 /Small Business 2 /Staffing and Temp Agencies 0 /Supply Chain 0 /Trucking and Delivery 0 /Zulily Vendors 0
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