Helping you with all your Invoice Factoring of Accounts Receivables Needs
Invoice Factoring is financing of Accounts Receivable. It is a great help to businesses which primarily or exclusively serve business (B2B) or government (B2G) clientele who pay on net 30 days or longer terms. When you factor one of your net 30+ invoices, you can be paid almost immediately. A factoring company will pay you on the invoice (minus a very small fee) and then collect from the company to which you originally sent the invoice.
Invoice Financing or Factoring, allows businesses that have outstanding invoices from customers with good credit to use those accounts receivable to access relatively quick cash. There are two options available. An Asset Based Loan allows you to borrow money against your current invoices, whereas Invoice Factoring is a sale of your invoices to a third party. These two methods have significant differences. Most entities that will purchase invoices (Invoice Factoring) prefer to deal with companies that have $3 million or more in monthly revenues and borrowing against invoices (Asset Based Loan) is usually only available to businesses needing $1 million or more. While there are companies that will deal in smaller amounts, neither solution is likely to be viable for very small businesses.
Cities and Regions We Serve
Our team serves clients from all across Canada and the USA.
- Western Pennsylvania
- Pittsburgh Pennsylvania
- All Across The USA
- Toronto and the GTA
- British Columbia
- All across Canada
Non-Notification Invoice Factoring
Non-Notification Invoice Factoring works like regular invoice factoring, except it allows you to collect on your invoice instead of the factoring company. This type of factoring is perfect if you do not want your clients to know you are factoring your invoices.
Good for Short-Term Working Capital
Invoice factoring is an ideal tool for businesses that need a short-term working capital solution. It accelerates cash flow and brings in much needed funds without having to apply for a loan. Invoice factoring works great for small cash crunches. It is not suited for major capital investments or larger scale projects.
Let Priority Lending Handle Invoice Factoring For You
Priority Lending will fast-track the factoring process for you and arrange a factor/lender in the shortest time possible – usually within one business day. Your Priority Lending Financial Advisor will start the process by getting to know your business, your products/services, your clients, and your credit profile. Once this is done, you will complete some paperwork and the money will be transferred to your account in less than 48 hours in most cases.
Frequently Asked Questions...
What do I need to qualify for financing?
- Minimum Time in Operation: 3 months
- Minimum Revenue: $50,000 annually
What are the benefits of this?
- Relatively simple application process
- Your credit score irrelevant
- Quick access to cashInvoices themselves are the collateral
What are some of the advantages of this?
A major benefit of Invoice Factoring is the availability to small businesses that have no established credit. Because you’re selling accounts receivables, the credit score of your customers is taken in to account but yours is irrelevant. You can access cash very quickly, which may allow businesses with regular monthly operating expenses to offer Net 30 and Net 60 day terms to customers, and Invoice Factoring is easier to get than business loans. Finally, setting up Invoice Factoring is relatively quick compared to other kinds of business financing.
The typical interest rate for Invoice Factoring will range between 1.5 and 3.5 percent per month, depending upon the size and credit score of the company paying the invoice.
Invoice Factoring Industry Examples
- Immediate capital for purchase of new equipment to meet expansion demands
- Taking advantage of the opportunity to purchase inventory at a temporary discount
- Paying current bills while awaiting payment from your customers
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