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Factoring for the Service Industry

August 19, 2022
Phil Cohen

The Simple Cash Flow Solution for Service Providers

If you offer your professional services to businesses that are slow to pay, close your cash flow gap with Factor Finders’ invoice factoring for service providers!

Many companies outsource important but infrequent business operations to professional service providers rather than employing an in-house team. While these contracts are attractive, they may not give you sufficient working capital if their needs are cyclical or if they are unable to pay you in a timely fashion. Bank loans may be an option if you can meet their stringent approval criteria. However, if you are just starting up, have faced financial difficulty in the past, or lack adequate collateral to secure your account then those conventional loans are likely out of reach.

Invoice Factoring Works For Service Providers

Fortunately for service providers, invoice factoring is a viable option! Factoring is an alternative option for financing your invoices, which uses the invoices themselves as the base for advancing funds. Once you are approved, you can qualify to receive as much as 90 percent of your invoice value immediately with a reserve payment of the remainder when the factor collects. Business factoring is a simple process:

  1. Submit your valid, unpaid invoices for work completed
  2. The factoring company will verify the invoices and advance you money within 24 hours
  3. Your clients will pay the service factoring company directly
  4. The factor will send you the remainder of your invoice value, minus a small factoring fee

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Factoring Offers Service Providers Far More Than Access to Cash

When you choose factoring for service providers, you are choosing a complete business support system that goes above and beyond rejuvenating your working capital. Other important benefits of factoring services include:

Competitive rates: Factor Finders offers industry-low factoring rates to our service providers. You may qualify for rates as low as 1.59 percent for your service invoices!

Fast approval: Unlike the lengthy qualification process for a conventional loan, you can begin factoring in as little as 3 to 5 business days!

Approval with poor credit: Factoring for service providers is designed to support startup businesses and rehabilitate struggling ones. We base our funding decisions on your clients’ creditworthiness instead of your own, so you can be approved even if your credit score is less than ideal.

Same-day funding: Once you begin factoring, you have the opportunity to receive same-day transfers of your factored cash. Your factor may also offer next-day transfers for a lower fee.

Unlimited funding potential: Your factoring ability is based on your invoice volume – the more work you do, the more money you can receive! Our account managers can offer customized service provider factoring packages ranging anywhere from $5,000 to $10 million!

Credit building: Use the cash you receive however you need to keep your business running steadily. Cover day to day expenses or pay down old debt to improve your credit rating for future financing needs.

Greater control over operating costs: With no up-front costs and a standard fee, you can easily account for the cost of factoring on your balance sheet. You have the flexibility to fund as much as you need to maintain your cash flow, so you can control your costs by only submitting invoices when you need.

In addition, with easy access to working capital you can negotiate discounts and early payment incentives with your creditors. Your factoring company’s complimentary credit checking and collections services will also save you time and money that you can focus on other areas of your business.

Are you ready to start factoring?

Call us for more information: 855-322-8671

All You Need to Begin Factoring

A short application

A current accounts receivable aging report

A list of customers/invoices you’d like to factor

Articles of Incorporation, Articles of Organization or DBA filing

Service Provider Factoring is an Option in Any Service Industry

As long as you provide professional services to other businesses, you can factor those invoices for immediate cash. Factor Finders’ funding partners offer factoring for service providers in a number of practices:

This is just a short list of the professions we serve. If you provide services not covered here, contact us to learn more about factoring service invoices in your field!

business men company services

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Talk to Us: 855-322-8671
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