Search:

Would you like to contribute to this site? Factoring Menu Submit an Article Submit a Tip Place your Ad Add URL Factoring Questions? Contact Us  Factoring Financing   Types of Factoring   Invoice Factoring   Invoice Discounting   Receivables Factoring   Medical Receivables   Freight Factoring   Trucking Factoring   Factoring Forfaiting   Factoring Companies   Factoring Business   Cash Flow   Cash Flow Financing   Accounts Receivables   Receivables Collection   Working Capital   Business Capital   Invoice Financing   Commercial Financing   Business Financing   Business Funding   Small Business Funding   Structured Settlement Funding   Asset Based Lending   Small Business Loans   Commercial Finance   About Factoring

Return To Factoring Article Archive   Invoice Factoring and how it Works By Marco Terry If you are like most business owners, your first reaction will be to call your banker. Unfortunately, banks will not lend money to businesses that are new, have no hard assets or dont have three years worth of profitable financial statements. At this point, most business owners give up, thinking that they dont have any other options. However, they do. If your company sells products or services to large credit worthy companies, you could qualify for invoice factoring financing. Invoice factoring reduces the time it takes for you to get your money to one day. How quickly could you grow your business if your invoices were paid in 24 hours? As opposed to bank loans, factoring companies do not require hard collateral. The only requirement is that you have invoices form credit worthy clients. Factoring companies work differently than banks. A factoring company will provide you with financing based specifically on your invoices. This means that if your invoicing grows, your financing also grows. Invoice factoring is very simple: 1. You generate invoices for your products or services 2. You submit the invoices to your clients and to the factoring company 3. The factoring company advances you up to 85% of the gross value of your invoices (the remaining is kept as a reserve to offset disputes) 4. Once the invoice is paid by your client, the factoring company releases the 15% reserve and charges their fee Factoring financing is easy to qualify for and can virtually eliminate the 30 to 60 days it takes for your customers to pay. It provides you with the necessary working capital to grow your company and take new opportunities. About Invoice Factoring Group Need to receivables factoring? We can provide you with a factoring, invoice factoring or accounts receivable factoring quote for free. Marco Terry, the president, can be reached at (866) 730 1922 Copyright (C) Commercial Capital LLC - Article may be reprinted if not modified and if all links are kept live. Small Business Venture Capital

Get your Factoring questions answered... Subscribe to our Factoring Newsletter FREE! Your First Name: Your Email Address: Enter above security code

Home  |   Factoring Blog  |   Ask the Factoring Expert  |   Factoring Archive  |   Factoring RSS Feeds  |   Advertise  |   Sitemap