Commercial Factoring Can Jump-Start Your Company
Positive cash flow is one of the most critical elements of a successful business. If your company struggles to make payroll and meet other expenses because of a lack of cash flow, a commercial factoring program could be the way for you to close the gap. Factor Finders’ commercial factoring services help companies of all shapes and sizes – in all industries – turn their receivables into immediate cash.
Don’t settle for jumping the hurdles to qualify for a traditional business loan. Instead of stringent approval criteria, static credit lines, and debt on your balance sheet, use commercial factoring to jump-start your company’s cash flow. Approval takes days instead of weeks and does not require a pristine credit history or years of financial records.
Your credit line, meanwhile, grows as your sales grow so you can cover new operating costs without worry. And, of course, there is no debt on your balance sheet with factoring because it is not a loan!
Because there are no hidden fees associated with commercial factoring, determining your factoring costs is easy. Because Factor Finders can help you secure industry-low rates for commercial factoring, covering your factoring costs is even easier.
The Commercial Invoice Factoring Process
Once you are approved for commercial factoring it is simple to get the cash you need. Complete this process as often as you need to keep money flowing in, even if you already have open transactions.
- Submit your invoice(s) for completed work to the factoring company. Invoices must be valid, accurate, and unpaid. Include any necessary backup documentation such as timesheets.
- The factoring company will verify that work has been completed and advance up to 90% of the invoice value to you within 24 hours.
- Continue doing work for your customers and building your business while the factor collects from your customers. During this time you may also submit new invoices for factoring.
- Once the factor receives payment they will send you a rebate of the remaining invoice amount, less a small factoring fee.
Business owners can factor invoices on either a recourse or non-recourse basis, depending on your industry . Factoring with recourse allows the factor to turn open invoices back over to the client after a specific date or number of days for resolution and typically features a lower factoring fee. Non-recourse factoring is a risk-free option for companies that cannot cover a bad-debt loss. With non-recourse factoring, the factoring company takes the risk of non-payment.
Commercial Factoring: The Total Business Solution
Factoring commercial invoices is a great way to put money in your bank account, but did you know that it can help your business in other ways as well?
That’s because commercial factoring, unlike conventional lending options, is not just about the transfer of funds. It is a total business solution for companies of all sizes and in all stages of development to build, rebuild, or grow. Your factoring company’s involvement may begin with an invoice, but it can become much more.
One key difference between conventional business lending and commercial factoring is that when you factor commercial invoices, you transfer the credit and collections risk of those invoices to the factoring company. Instead of spending valuable time and energy pursuing your customers for payment, you can focus on innovation and transformation.
Other substantial benefits of commercial factoring include free credit and background checks for your current and prospective customers; 24/7 online reporting to track your account status; and discount opportunities from your factor and your creditors. Your factor may offer you a discounted factoring rate if you factor a large volume of invoices monthly, while ready cash flow allows you to negotiate discounts for early payments or bulk orders from your suppliers.
Factoring Commercial Invoices to Supercharge Your Business Cash Flow
Even if you have been turned down for a traditional business loan, you can still find total cash flow freedom with Factor Finders’ competitive commercial factoring services. The underwriting process is fast and easy, with most decisions made within 3 to 5 working days of the initial application.
You don’t need reams of financial documents or a squeaky-clean credit report to be approved for factoring. Copies of the invoices you want to factor, a current customer list, an aging, and your Articles of Incorporation are all you need to apply. While the commercial factoring company may ask for some additional documents during underwriting, credit decisions are based on your customers’ creditworthiness rather than your own.
You put in the work for your invoices – now, put your invoices to work for you. Commercial factoring offers the cash and support you need to revitalize your business. Call <a href=”tel:1-855-322-8671″>855-322-8671</a> to speak with a commercial factoring account manager today!
Factoring for Commercial Industries
Commercial factoring began as a financing option for the textile and apparel industry, but today it is an option for companies in nearly every industry on the planet to access the working capital they need. Factor Finders has a network of funding partners that spans the globe, with dedicated specialists in the economy’s most critical industries:
Temporary Staffing (including permanent placement)
Oil & Gas
Textiles & Apparel
When you work with a commercial factoring company your account manager will be able to help you navigate the unique structure and special requirements of whatever industry you serve, from licensing and compliance to billing and invoice management. If your industry is not listed above, contact us today to learn how commercial factoring can work for you.