Invoice Financing Improves Your Cash Flow Instantly

invoice factoring

What is Invoice Factoring?

Invoice factoring, also known as invoice financing, helps small to midsize businesses get paid faster. The use of invoices are very important when it comes to any business, as this shows written verification of purchase between a buyer and a seller. Managing this part of your business may be easier with the use of an invoice template. As it must have the relevant requirements, keeping the layout simple and consistent may be the best way forward.

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. However, if you want to take care of this yourself and get of the amount, you should check out various sample invoice template which can be downloaded from many online websites.

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. You can always check out how to fix credit if you are concerned about any part of the process.

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.

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How Does Invoice Financing Work?

5 Easy Steps to Invoice Factoring:

1. Service your customers and submit invoices to the invoice factoring company

2. The factoring company advances you up to 95% of the invoice amount

3. Use the cash advance to make payroll, purchase supplies, pay down debt, etc.

4. Your clients pay the factoring company directly

5. Once the invoice is paid by your clients, the factoring company returns the remaining balance to you, minus a small fee for factoring invoices

Poor Credit? No Problem

If your business has little or no credit, no problem. It’s the credit worthiness of your clients that matters to the factoring company, not yours. If your customers are reliable and have good credit, you will most likely be approved to start factoring. A great benefit of invoice financing in comparison to a traditional bank loan is that it doesn’t create debt. Factoring your invoices can improve your credit rating by allowing you to pay down existing debt with the extra capital. You may use the extra cash from factoring however you’d like, whether it be to make payroll, purchase new supplies or pay down existing debt, it’s up to you.

The Benefits of Invoice Funding

There are many ways funding invoices can benefit your business. If you tend to have cash flow problems factoring is the perfect solution for your company. Use invoice funding to streamline operations and grow your business.

The many advantages of financing invoices include:

  • No monthly minimum or maximum amounts: You are not required to factor a specific amount each month. You can finance as much or as little as you’d like.
  • No long-term contracts: There are no long-term contracts involved with the invoice factoring process. It’s Fast Payroll Funding’s goal to make the process quick and easy for your company.
  • Start-ups and businesses with poor credit are still eligible: As mentioned above, businesses with little or no credit are still eligible for invoice financing as long as their clients are in good credit standings.
  • Avoid the collection process: The invoice factoring company you will be matched with will handle all collections once they purchase your invoices, so you don’t have to.
  • Factoring helps eliminate bad debt: Pay down existing debt with the extra capital you receive from factoring.

About Fast Payroll Funding

Fast Payroll Funding works with a wide range of invoice factoring companies who purchase unpaid invoices and advance you the cash you need—almost immediately. Don’t wait on slow paying customers, contact us today for a free quote at 844-299-3206.