How Factoring Works
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Invoice Factoring

Improve your cash flow – immediately, with Invoice Factoring.

What is Factoring?

Invoice factoring (also known as accounts receivable financing) is the sale of a company's invoice(s) to a finance company (factor) at a discount. The purpose of factoring is to provide immediate and often needed working capital up front, not 30+ days later. Invoice Advance converts your invoices into cash immediately to cover business overheads such as payroll and other operating expenses.

Advantages of Factoring

Turn your terms into cash on delivery, increase cash flow, and most importantly grow your business. Worry less! Knowing you have the money for day-to-day overhead. With Invoice Advance, you eliminate the 30 to 90 day period you typically wait for customer's payment, and in turn you will have the money you need when you need it...to run your business. No matter your motives for choosing Factoring, you are sure to reap the benefits. To put the advantages of invoice factoring to work for your company, contact Invoice Advance today!

How Factoring Works:
The Factoring Cycle:

You sell a product, and or a service to your client.

That's all she wrote; repeat "The Factoring Cycle" as often as needed.

You invoice your client, and submit a copy of the invoice(s) to Factor.

Once paid, the Factor pays you the remaining 10-30% (less service fees).

Factor then verifies the authenticity of the invoice(s) submitted.

Factor will now wait on payment of invoice(s) from your client.

Once verified, Factor will fund 70 – 90% of invoice(s) face value.

The Factoring Cycle:

You sell a product, and or a service to your client.

Step 2:

You invoice your client, and submit a copy of the invoice(s) to Factor.

Step 3:

Factor then verifies the authenticity of the invoice(s) submitted.

Step 4:

Once verified, Factor will fund 70 – 90% of invoice(s) face value.

Step 5:

Factor will now wait on payment of invoice(s) from your client.

Step 6:

Once paid, the Factor pays you the remaining 10-30% (less service fees).

Step 7:

That's all she wrote; repeat "The Factoring Cycle" as often as needed.

Invoice Factoring Calculator
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