Invoice Financing Improves Your Cash Flow Instantly
What is Invoice Factoring?
Invoice factoring, also known as invoice financing, helps small to midsize businesses get paid faster. Invoice financing, is the process of selling your company’s unpaid invoices for instant cash. The process of invoice factoring allows businesses to receive up to 95% of the invoice amount within 24 hours rather than waiting up to 60 days for clients to pay.
There are two types of invoice factoring that businesses can choose from, recourse and non-recourse factoring. Recourse factoring requires small business owners to ultimately take responsibility of the invoice if their customers do not pay. Non-recourse factoring allows companies to sell their invoices to the factoring company who then takes responsibility for payment of the invoice. With non-recourse factoring, the factor assumes all credit risks for the collection of the invoices when purchased.
Is Factoring Right for Your Company?
Is your small business experiencing growth and your working capital can’t catch up? Do you have reliable customers who are slow to pay? Do you need extra working capital to pay your employees this week? If so, invoice factoring may be for you. Contact Fast Payroll Funding today so start the short application process for invoice financing. Once you are approved, funds can be transferred to you within 24 hours.