The basics of Business Factoring
The need for business to obtain money in order to maintain or expand will never go away. Short-term and long-term funding is needed in many business situations and if you are reading this, you may be in the same boat. Some of the issues range from making payroll on time or simply increasing working capital to grow. No matter your current state of business, you have probably explored small business loans or business lines of credit among other lending options. Business factoring is an option less talked about than others but it can help many for answers to their problems.
What is it?
Invoice factoring is another common term associated with business factoring and accurately depicts what it is: taking your business invoices and receiving cash for them from a factoring company.
Factors take accounts receivable, review them and when approved grant a percentage of the value of the submitted invoices.
This is a great option for many because credit issues do not come into play. Instead, monthly invoices are the ticket to an early payday along with the credit of those clients you are invoicing.
How much you get PAID
Typically, you can expect 70-90% of your invoices. Keep in mind this all depends on your previous invoice history and your customers so these percentages can vary.
