Engineering Factoring Services
Engineering Factoring Services
Engineering firms are responsible for the products and infrastructure that keep society moving. When a cash crunch threatens to limit that movement, firms can rely on engineering factoring services to keep cash flowing.
High operating costs and falling returns can affect even the most successful engineering firm’s profit margins and make taking on new contracts difficult. Fortunately, invoice factoring for engineering can help you cover the margins without adding new debt to companies’ balance sheets.
Invoice Factoring is the Answer to Funding a Growing Company
Even if you are just starting up, working to pay down an existing loan, or recovering from a difficult period, you can use engineering factoring to put your company on the path to success. Factors work with banks and other traditional lenders to pay off current loan balances and create a working line of credit based on the value of your existing invoices. Also, because factoring is not a loan your company can qualify even if you have poor, little, or no established business credit.
Firms of all sizes can benefit from a flexible engineering factoring program. We can have your account set up and ready to fund in as little as 3 to 5 working days after receiving the required information.
Factoring Services for Engineering Firms
How Does Engineering Factoring Work?
Once you have completed a project and generated an invoice, send a copy of that invoice to the engineering factoring company. The factor will verify that the invoice is accurate and that work has been completed; then, they will advance you up to 90 percent of the invoice amount. Funding is typically initiated within 24 hours of receipt.
You can continue operating normally while the factor works with your customers to collect payment, including submitting new invoices for funding. Once invoices are closed, the factor will remit any remaining invoice amount to you minus a small factoring fee.
Here’s How to Get Started Factoring Invoices
To get started, fill out the factoring application and submit your current AR aging report; copies of the invoices you wish to factor; and the company’s Articles of Incorporation. The factoring company will conduct minimal due diligence to establish your eligibility for funding and may ask you for additional documents to support their research.
Engineering Factoring Benefits All Firms
If you provide any type of engineering services, you can qualify for engineering factoring. Just some of the work we can fund includes:
- Architectural engineering
- Chemical engineering
- Electrical engineering
- Land development
- Professional engineering
- Structural engineering
- And more!
When you begin factoring, you gain access to far more than faster cash flow. The factoring partnership allows you to control your costs by submitting only the invoices you need, when you need the funds. There are no monthly minimum or maximum amounts to meet and no transaction limits.
Many engineering factoring companies will also provide comprehensive back office support so you can focus on completing projects rather than covering administrative concerns. Invoice management, collections, and background checks are a few of the services you can request for no additional charge.