Authored by Phil Cohen
When you are short on cash due to slow-paying customers, time is money – literally. It can take several weeks or even months to be approved for loan from a traditional lender. This can leave you stressed if you have payments looming or employee payday on the horizon. With invoice factoring, you can have cash in your hands within 24 hours after approval.
Easy Application with Factoring
The factoring application process is simple and straightforward. You first connect with a factoring company that fits your business and needs. Not sure how to find a factoring company? Factor Finders can do that work for you. As a factor broker, we have a network of over 75 factors from all different industries. We will pair you with the best fit so you can move on in the process. You will answer some questions and provide the required documents for review by the factor. Once you have been approved, you will sign the factoring agreement, which outlines the fees, factoring limits and advanced rates. After signing the agreement, you will send your unpaid invoices to the factoring company. Following their approval, they will advance you the cash from the invoices up to 90%. You will usually have this cash within 24 hours after approval. Once the factor receives payment from your clients, they will release the remaining balance to you, minus the fee.
Advantages of Factoring
Factoring provides several advantages compared to traditional banks. The application process moves quicker than applying for a bank loan. Instead of waiting weeks, you can have approval within five days. You also do not have to worry about your credit record or years in business as factoring does not weigh these aspects like traditional lenders. Factoring is a debt-free way to access cash. Since the invoices are yours, you are not incurring any additional debt. You also get to choose invoices to factor and how frequently, without any long-term commitment.
Reach Out to Factor Finders
Get quick access to your cash when you need it. Contact Factor Finders and we will respond within minutes. Stop waiting for slow-paying clients and lengthy bank approval periods with factoring today.