Invoice Factoring Overview
Invoice factoring is a business finance program that expedites cash flow for B2B organizations.
B2B businesses and other organizations that provide goods or services to other businesses, government agencies or other commercial entities on payment terms may be able to factor receivables in order to speed up cash flow and unlock working capital.
Some of the industries where invoice factoring is a common business finance tool include:
- Freight, trucking, transportation and logistics
- Oil, gas, energy and utilities businesses and contractors
- Manufacturers, distributors and other supply chain businesses
- Telecom, satellite dish and cable companies
- Architectural and engineering firms
- Security guard companies
- Staffing, temporary employment and recruiting agencies
- Printing companies, marketing agencies and other B2B service providers and consultants
Unlike business loans and other working capital financing which must later be repaid, invoice factoring simply speeds up an organization’s cash flow. Factoring gives an organization access working capital it has already earned by selling customer invoices to a factoring company for a small fee without having to wait for their customers to pay.
Our factoring clients get immediate access of up to 98% of the face value of a factored invoice right away. Factoring fees usually range from 1-5% with free same day funding. Unlike some factoring companies, we do not charge application, schedule processing or notification fees, and many of our clients factor with no long term contracts and no factoring minimums.
Find out more about the invoice factoring process and the benefits of receivables financing by requesting a free, no-risk quote.