What is a Factoring Company versus a Bank Loan? Factoring is not a loan but the sale of your invoices to a Factor A common misconception is that invoice factoring is a loan. However, this is not the case, and factoring is very different from bank loans. On a daily basis, businesses face problems with […]
Frequently Asked Questions
Invoice Factoring Frequently Asked Questions (FAQ): What is A/R factoring, how does it work, and how can you use A/R financing to safely increase your working capital.
How Do Factoring Companies Buy Accounts Receivable?
Why Sell Your Invoices to a Factoring Company? Safe Working Capital. When companies are stuck with 30-90 selling terms, need the cash flow, and invoice factoring fills these gaps. Factoring companies provides immediate working capital. Factoring companies that buy accounts receivable, such as Bankers Factoring will provide immediate funding. How Does Invoice Factoring Work? The […]
What is a Factoring Company Reserve?
Why Does an Invoice Factoring Company Hold Back or Reserve a Percentage of Your Invoice? What is an Invoice Factoring Reserve? Factoring companies hold back a portion of your sold invoices called the reserve account for contingency purposes. In invoice factoring, a reserve helps reduce risk in chargebacks, credit memos, or vendor returns. The factoring […]
What does Factoring Your Invoices Mean?
What does Receivable Factoring Mean in Business? Don’t Wait for Customers to Pay their Invoices. Use Invoice Factoring. Is factoring invoices good for my business? Invoice factoring means what it sounds like: you get money for your invoices or accounts receivables (AR). This allows your business to access cash without waiting for customer payments. Nevertheless, […]
How to Talk to Your Customers About Factoring
Explain to Your Customers About Using Invoice Factoring Explaining the Benefits of Invoice Factoring to Your Customers When selling your invoices to Bankers Factoring, letting your customers know that you are using invoice factoring is an important and necessary step. Many large companies already pay factors, but some may need to be educated on how […]
Venture Capital vs Invoice Factoring
Factoring versus Angel Investment Comparing the use of invoice factoring and venture capital funding as financial solutions. Invoice factoring and venture capital are both financial tools startups may look towards to increase cash flow. Startups need cash and need it now – according to a study by CB Insights, running out of cash is one […]
Tiered Factoring Pricing for Start-Ups
Invoice Factoring Pricing based on your Sales Volume Fast Growing Start-Up Companies Pay Less for A/R Factoring as they Grow. Are you a rapidly growing startup needing AR Financing? Don’t get locked into high flat fee factor pricing. With tiered non-recourse invoice factoring from an employee-owned factoring company like Bankers Factoring. The faster you grow, […]
8 Requirements to Qualify for Invoice Factoring Services
Factoring Funding Faster Steps with Your Company Data The Steps to Faster Factoring Funding You are reading this because your company has cash flow issues or is expecting a big order, and you hope invoice factoring can fix your working capital constraints and get your business funding fast. At Bankers, we are happy to help […]