Secure Funding to Grow Your Tech Company
Factoring for Technology Companies Provides Fast Funding
Whether you produce new technologies or provide tech support to corporate clients, slow payments can derail your operations. Fortunately, invoice factoring for technology companies will close the payment gap and strengthen your cash flow so you can focus on the business at hand.
How Does Invoice Factoring Benefit Tech Companies?
Invoice factoring for technology companies is a fast alternative to traditional financing options. Instead of creating debt on your company’s balance sheet with a loan, tech factoring companies will purchase your open invoices and advance you up to 90 percent of their value! You can use the cash you receive to support all areas of your operation while the factor collects from your clients.
Factoring Services for a Variety of IT Businesses
Factor Finders works with a variety of funding partners that provide factoring for tech companies serving many functions. Clients include:
- Technology startups
- Mobile app developers
- Web developers
- Software developers
- Tech hardware producers
- IT consultants
- Online Marketing Services
With steady cash flow, your tech company can remain on the cutting edge of tech trends. Factoring is a simple solution to financing technology companies. The process is simple and funding is quick.
Here's How Invoice Factoring Works for the Tech Industry
When you invoice your customers for a completed tech product or support order, send a copy of the invoice to the technology factoring company.
Receive a Cash Advance
The factor will verify your invoices and advance between 80 and 90 percent of the invoice amount to your account within 24 hours. The remainder goes into a reserve account until the invoice is closed.
It’s Business as Usual
The tech factoring company will engage in active collections efforts with your customers. In the meantime, you can cover your regular expenses and pay down old debt to improve your credit rating.
Collect Reserve Payment
When the factor collects from your customers, they will pay out your remaining reserve amount minus a small factoring fee.
Factoring is More Than Easy Funding for Technology Companies
Factoring for technology companies is a more robust and rewarding relationship than a mere cash advance. When you begin factoring your invoices, you gain access to a number of additional benefits that will help you run your business effectively.
This benefit is well worth repeating. You can save on overhead and staffing costs by allowing your technology factor to spearhead your collections. The factor will communicate directly with your customer to follow up on open invoices and schedule payment.
Credit and background verification
Another expensive element of working with other businesses is running background checks – after all, it is critical to trust that your clients can and will pay. Eliminate this expense with factoring for tech companies! Your factor will evaluate your new and existing customers for creditworthiness and assign a limit to each approved company, so you can complete orders with confidence.
Invoice factoring for technology companies is an ideal financial solution for many companies, but Factor Finders understands that a long-term contract may not be the best fit for your tech company. Our factoring agreements offer short-term relationships that may be renewed as long as they are working and that may be canceled if and when you are ready to move on.
Constant access to updated online reports will help you incorporate the latest information about your factoring account into your business records. Your factor will provide you with a unique login that will show you when your last transaction was processed, what invoices remain open, and so much more.
Recent tech startup? No problem. You can be approved for factoring with poor credit or no credit history.