Invoice factoring is a popular form of alternative financing for business owners, but some aspects of factoring can be confusing. If you have questions about factoring invoices, these should help get you some answers. If you can’t find an answer here, feel free to contact us to clear up any confusion you might have about working with a factoring company.
- Submit unpaid invoices for work completed
- The factoring company verifies invoices and advances you the funds (up to 95% invoice amount) within 24 hours
- The factoring company collects payment from your customer according to your payment terms
- When payment is received, the factor releases the remainder of invoice amount, minus a small factoring fee
- Current – Not overdue according to your company terms
- Payable by another business – Invoice factoring is not an option for consumer-pay invoices.
- Unpledged – No other company can have a claim to the invoice.