Factoring invoices has become one of the top alternative financing solutions over the past few years because it gives companies a way to turn their outstanding invoices into a healthy cash flow.
Instead of waiting 30, 60 or even 90 days for your customers to pay you, you can get upfront cash for your accounts receivable immediately. Once your clients pay, the factoring company will forward you the rest of the cash minus a small factoring fee.
Whether you are a new start-up or an established business, having quick access to working capital allows you to focus on growing your business. When you factor your invoices, you don’t even have to incur debt to meet your monthly expenses. So, how easy is it to get started with factoring?
Many company owners are pleased to learn that the on-boarding process is quick and easy. While traditional bank loan applications can require many documents and take a long time to approve, gaining approval for factoring often takes just a day or two after the factoring company receives your paperwork.
Here is a simple example of how factoring works.
In addition, factoring companies do not focus on your own company’s credit history or assets when determining whether they are willing to finance your invoices or not. They will be much more focused on the creditworthiness and payment history of your customers. Even if you have been turned down for bank loans or other financing, you can still qualify for invoice factoring. After those credit checks, you can receive upfront payment for your invoices within one or two days of issuing those invoices to your customers.
If you are considering factoring your invoices, then the first step is to research the factoring companies that work with other companies in your industry. Find a reliable, reputable company that has been in the industry for a number of years and that will provide a dedicated account manager to work with you.
Interstate Capital makes the factoring approval process quick and easy. Companies of all sizes can qualify for this no-debt cash flow solution, regardless of their number of years in business or their credit scores. Get an instant factoring rate quote from Interstate Capital today.