Factoring & Purchase Order Financing
Can't afford to wait 30 to 60 days to get paid by your commercial or government customers? Invoice factoring provides you an advance on your slow paying invoices so you can pay employees and suppliers. We can provide you with a competitive factoring and purchase order financing quote - today.
What is invoice factoring?
Factoring is an effective form of business financing in which you sell your invoices to a factoring company in exchange for immediate payment. It eliminates the 30 to 60 days that your customers take to pay your invoices and provides you with the working capital you need to run your business.
Factoring invoices is simple and can be used by most businesses. Here is how it works:
- You deliver goods / services to your client and issue an invoice
- You sell your invoice to a factoring company, who immediately advances you the 1st installment. This will be between 70% and 90% of the gross value of the invoice. You usually receive the advance in as little as 24 hours
- After 30 to 60 days, the invoice is paid by your customer and the factoring company advances you the remaining funds as a 2nd installment, less a small financing fee
- An important result of the using invoice factoring you will get predictable cash flow. Factoring eliminates the uncertainty of when you'll get paid.