US Financial Companies
What is Invoice Factoring? Great Question. Invoice Factoring is simply the sale of an invoice to a third party, factoring company, for immediate cash. This is all done for a nominal fee.
To give an example; Your company (client) invoices your customer (debtor) for the product or service you provide. Your terms are 30 days to the debtor but you need money faster. You sale us (factor) the invoice. We pay you for the invoice less a reserve (say 10%). Once the debtor pays us for the invoice, we send you the 10% reserve less our fee for those 30 days (say 1%).
In the meantime, your company has the cash it needs for payroll, new contracts, inventory, etc.
It is a great way for a company to improve and manage their cash flow while continuing to grow.
Take a minute to watch our short video on What I Invoice Factoring? If you still have any questions or would like to start the process of turning your open invoices into immediate cash, give us a call. We have invoice factoring experts in every business available to help you today. Call us today at 614-777-0000.
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