What is Invoice Factoring?
Invoice factoring is a financial transaction in which a business sells its accounts receivables (invoices) at a discount to a factoring company. Factoring companies normally advance around 80-90 percent of the invoice value up front. The remaining balance is remitted when the invoice is paid minus a factoring fee.
Invoice factoring offers the advantage of giving companies faster access to funds than the normal 30 to 90 days a customer has to pay their invoice. The process is pretty straightforward.
Invoice factoring companies base their funding decisions on your customer’s credit rating and payment history. Factoring is a good option even if have poor personal and business credit.
Please contact one of Financial Advantage’s funding advisors about our invoice factoring programs. All our clients work one on one with our loan advisors so that you are not passed around to multiple people. From start to finish, Financial Advantage Group is always there to help with your business finance needs.