Commercial Factoring: Outsource Funding Solution
Commercial factoring of invoices is an alternative way for large businesses to increase their cash flow quickly in return for their unpaid invoices.
For manufacturers, wholesale distributors, staffing companies, and transportation companies, ICC is the total outsource solution for commercial factoring including credit, billing, collections, and funding.
Interstate Capital is North America’s premier factoring company for the staffing, manufacturing, distribution, transportation, and business services sectors.
Interstate Capital has funded billions of dollars of invoices for thousands of businesses wishing to save time and money by improving their cash flow. Interstate Capital doesn’t just fund its clients, it provides an entire commercial solution for credit, billing, collections, and funding.
Whether you own a temporary staffing service, a manufacturing, or wholesale distribution company, ICC has experience to handle your cash flow needs.
Commercial Factoring For Increased Cash Flow
Commercial factoring of invoices is an alternative way for large businesses to increase their cash flow quickly in return for their unpaid invoices. This allows companies to fund their operations without needing to wait for customers to pay their invoices. So long as the customers’ debts are paid within three months, you sell your invoices at a percentage based discount and get money into your accounts, usually within just a few days.
This method of funding businesses, whether it is just to keep everything paid off or to be used as venture capital for your company, is becoming more popular as commercial bank loans become more scarce. Other businesses simply do not have the best credit history which makes them ineligible for loans or preferential interest rates. It is an attractive alternative to traditional bank loans because it does not require anything except commercial invoices for debt held.
Commercial Factoring Options
Commercial Factoring is an especially attractive option for large, employee-based businesses. The trucking and freight industry, manufacturers, staffing companies, transportation companies, and service providers all use commercial factoring to cover the payroll, the bills, or the cost of investments. The process helps these large businesses save a lot of time and hassles when it comes to collections and speeds up the process of getting paid, something every business can get behind.
Commercial factoring is different than invoice discounting or invoice selling. Aside from factoring invoices, businesses can also use invoices as collateral to obtain loans they may not otherwise be able to get or sell their transactions at a discount which alleviates the concern of having to buy back overdue invoices. These rates may be considerably higher than invoice factoring discounts which can start at under one-percent. It really depends on personal preference and the credit worthiness of your customers as to which commercial factoring options will be ideal for your situation.