Factoring Services to Fit Your Business
Factor Finders, LLC provides comprehensive funding solutions for any business in need of more working capital. We support all types of businesses, ranging from start-ups to large corporations with competitive invoice factoring services.
Slow-paying customers can hurt small companies that rely on consistent cash flow. When money is held up in unpaid invoices, other operations such as funding payroll, hiring new employees, paying taxes, and expanding marketing efforts are often placed on hold. That’s where invoice factoring services can help. Invoice factoring (also known as accounts receivable factoring) enables small business owners to secure the cash flow necessary for continued growth.
What is Invoice Factoring?
Invoice factoring is an alternate financing solution for small businesses. Instead of waiting 30, 45, 60+ days for customers to pay, invoice factoring companies will issue a cash advance for your unpaid invoices within 24 hours. Unlike a loan, however, the factoring company buys your invoice to quickly provide the cash you need. It’s simply a way to get paid faster for the products and/or services you’ve provided. The process is simple.
Factoring can be used as either a short-term or long-term financing option. Some businesses prefer to use it short-term in order to get through seasonal cash flow ups and downs. Others may factor invoices over a longer period, especially if they have a few regular clients who pay on extended terms.
Is Factoring Invoices Right for Your Company?
If you answer yes to at least one of the questions below, then factoring invoices can help your business:
- Is your cash flow tied up in outstanding receivables?
- Do your clients take over 15 days to pay?
- Have you denied new business due to lack of cash flow?
- Have you been declined for bank lending?
- Do seasonal spikes in sales often leave you short on capital?
In addition to factoring, we offer a variety of funding options. From spot factoring to purchase order financing, our finance services work to fit your needs.
Contact us today for your free invoice factoring quote. We’ll help you get on the path to better cash flow today!
How to Qualify for Invoice Funding
First and foremost, invoice financing works for businesses that provide services and/or products to other businesses (including government contracts). Factoring is not an optimal solution for most business-to-consumer transactions. If you’re billing consumers, an unsecured loan or merchant cash advance is a better option.
Invoice financing is fairly straightforward. Approval is mainly based on the creditworthiness of your clients, since they’re the ones responsible for paying the invoice. Invoices must not be pledged to another entity as collateral. The invoice should be payable within 90 days, but sometimes exceptions are made depending on the industry. There is no minimum credit score required and start-up companies are easily approved.
Factoring Advance Rates
So, how much of an upfront advance will factoring provide? Advances vary by industry, but the average business owner can anticipate an advance of 80% to 90% of the invoice amount. If you submit an invoice for $3,000, for example, you can expect an advance of $2,400 to $2,700.
The remainder is placed into a reserve account. The reserve is released when your client pays the factor, minus a small fee for the factoring service. You can learn more about factoring fees here.
Invoice Factoring Services for Any Industry
Every major industry is eligible for our invoice factoring services. Factor Finders offers the following cash flow services (and more):
Fast Funding to Grow Your Business
Our clients based in the United States, Canada, and the United Kingdom expand their firms by factoring invoices to create operating capital through Factor Finders. Start-ups and fast growing businesses can benefit from financing as slow-paying clients tend to constrain cash flow. Invoice factoring for businesses offers more benefits and less risk than bank loans. These traditional lenders are typically unwilling to extend credit lines and may even cancel loans due to covenant violations.
Other ways you can use factoring to help your business succeed:
About Our Factoring Services
Recourse and non-recourse services: Two types of factoring services are available: recourse and non-recourse. With recourse, should a customer fail to pay their invoice after a certain amount of time, you will be required to pay back their advance, and the factoring agency will not be held liable for non-payment. In non-recourse funding, the factoring agency assumes the risk for any unpaid invoices, so you are not held responsible for outstanding payments. Since non-recourse factoring is less risky for you, it tends to have slightly higher factoring fees than recourse. If you have questions about which type of invoice financing is best for your business, we’re here to help!
Notification and non-notification factoring: Not 100% comfortable with letting your customers know that you’re using a factoring company? We understand. Our account managers are experts at handling these types of situations, and will happily work out a solution that you feel confident about.
Flexibility: How much you factor and when is entirely up to you and what you think is best for your company. Invoice factoring is designed to grow with your business, so as you expand, so does your capacity to receive more funds!
Put Our Services to Work for Your Company
We'll help your business secure the funding necessary to grow
Comprehensive Working Capital Solutions for Any Business
Curious about other finance options? Here’s additional cash flow services we provide:
Accounts Receivable Factoring uses your own invoices as assets that can be sold, thereby creating immediate cash for businesses who sell to customers on credit. Accounts receivable financing helps entrepreneurs meet expenses and pay vendors early to receive discounts.
Government Receivables Financing enables owners to take on large government contracts by generating working capital that would otherwise be tied up in accounts receivable.
Merchant Cash Advances offer an advance of a fixed amount in exchange for a percentage of daily credit or debit card sales.
Unsecured Loans for Small Businesses are ideal for bridging any short-term gaps in cash flow. No collateral is required.
Purchase Order Financing secures an advance to pay suppliers and ensure customer orders are filled.
Export Trade Finance transforms U.S.-based companies into global competitors by offering cost effective receivable finance, credit insurance approval, and credit analysis for exporters.