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How Factoring Works

Invoice Factoring : Birmingham, AL

What is Factoring?

Invoice Factoring is a simple buy and sell transaction. You sell your Birmingham Company's accounts receivable (invoices) to a Factor and the Factor then gives you capital for an agreed upon discount. Unlike traditional bank financing, Invoice Factoring relies on the credit of your clients, not you. Factoring provides an immediate rush of working capital to Alabama businesses which fuels growth and increases top and most importantly bottom lines.

Why Factoring?

  • Cash in as Little as 24 Hours
  • Increased Productivity
  • No Debt Created
  • No Loss of Business Equity
  • Easy to Qualify
  • Increased Sales Cycles
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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