How It Works
Invoice factoring is a solution for business owners who are struggling with cash flow due to slow-paying customers. With invoice factoring, also known as accounts receivable factoring, the business sells its unpaid invoices to a factoring company in exchange for a cash advance. Although it may seem intimidating at first, factoring is actually a simple and straightforward process. Learn more about how invoice factoring works.
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Make the First Call to Factor Finders
The first step in the factoring process is to contact Factor Finders. We are a factoring broker and we will connect you with the best factor for your business. Since each industry presents its own unique challenges, it is important to work with a factoring company that understands your company’s needs. At Factor Finders, we have a network of over 75 factoring companies. We will match you with the perfect factor for a successful factoring experience. When you contact us, we will answer within minutes to start the factoring matchmaking process.
Onboarding Paperwork, Invoices and Approval
After you have been introduced to your factoring company, you will need to complete onboarding paperwork. This is also the time to submit the invoices you wish to factor. The factor will review your application and invoices to verify the work has already been completed. Approval typically takes three to five days. Once your application has been approved and your invoices are verified, you will receive the cash advance.
Next Step: Cash Payout
Now that you have been approved, your cash advance will be disbursed. You will receive up to 97% of the invoice amount during this process. The rest of the funds will be added to a reserve account. After approval, you will have cash in your hands within 24 hours. You will no longer be responsible for collecting payments from your clients, as the factoring company will now take over that task. Once all of the clients have paid their invoices, the remaining funds will be released to you, minus a small factoring fee.
Factor Finders Provides Ongoing Support
The support from Factor Finders does not end at the matchmaking stage. You can receive ongoing support from us whenever you need it during any part of the process. If you have questions, concerns or comments, reach out to us and our team of experts will assist you. Contact us today to start the process.