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Home Factoring Blog Frequently Asked Questions Same Day Invoice Financing

  Chris Curtin

Same Day Invoice Financing

Same-Day Invoice Factoring

Get Same Day Cash on Your Invoices

Same Day Invoice Financing
Same Day Invoice Financing from Bankers Factoring

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Get Paid the Same Day You Invoice for Small Business

Is your small business struggling with SBA Loan repayments, increased shipping costs, and raw material increases? Even worse, are you scrambling every two weeks to cover payroll? Then sleep better at night with same-day invoice factoring for small businesses, startups, and entrepreneurs as an excellent solution to your lack of cash flow.

Same Day Invoice Factor Financing helps financially distressed businesses with late paying bills, IRS Tax Liens, and lack the credit history to secure traditional financing. Bankers Factoring works with emerging companies to secure cash flow financing across multiple sectors. We bridge the gap from business failures to business successes.

Once you set up your invoice factoring facility with Bankers Factoring, same-day funding is the norm. Invoices in the morning, our speedy verification process, and a wire to your business bank account by day’s end. As your invoice factoring company, we turn a business’s outstanding invoices into same-day working capital with fees similar to swiping a credit card.

Invoice Factoring is a method of debt-free commercial financing accessible to businesses with accounts receivable or open invoices to their commercial customers. So join the team of small business owners using Bankers Factoring same-day invoice factoring solutions.

You can also read our article on invoice financing for small business.

What is same-day invoice factoring?

Same-day invoice factoring service turns your invoices in the morning to 80-93% cash in the afternoon. Your company (our client) sells its open invoices to Bankers Factoring, the best invoice factoring company. The asset purchase of open receivables is in exchange for up to 93% of the invoice value on the same day as verification.

By selling your open invoice to major commercial customers, you forgo the wait of up to 30 to 90 days for payments. Invoice factoring eliminates the one to three-month delay for businesses to cover overhead and payroll without cash.

Invoice factoring, also called accounts receivable (A/R) factoring, is a robust financial tool for businesses needing immediate cash flow.

To learn more, visit our previous article, “What is Invoice Factor Financing?”

Same Day Invoice Financing
Same-Day Invoice Financing from Bankers Factoring

What are the advantages of same-day invoice factor financing?

Small businesses needing cash in the next couple of days do not have the time to secure traditional financing. Invoice factoring is a quick process from application to approval and funding. Cover the payroll for your employees by Friday with invoice factoring.

For example, suppose your business does not have the time to get conventional bank funding. In that case, you can sell open invoices or receivables to Bankers Factoring, an invoice factoring company. We provide immediate cash funding up to 92% of the invoice value the same day by selling your open invoices to us.

Same Day Invoice factoring gives you the following:

  • Meet payroll on time and don’t wait worry about when invoices paid.
  • Receive up to 93% of your open A/R value the same day as approval.
  • Quick approval process – Contact us today.
  • Working capital to make business decisions and stop the cash flow shortages.
  • Poor credit businesses or entrepreneurs qualify.
  • Available for businesses in financially distressed situations.

How much does same-day invoice factoring cost?

The factoring fee, also called the discount rate, runs from .95% to 2%, depending on risk criteria. The size and volume of your invoices and your customer’s creditworthiness contribute to your factoring fee.

Visit Factoring Rates Explained to learn more.

Bankers Factoring fee structure has two main benefits:

Tiered Factoring Pricing

We reward small businesses for rapid growth and for increasing their monthly invoice amount and volume. The more valuable your A/R value becomes, the more cost-efficient your factoring fee becomes. With our tiered pricing model, your startup can increase its consistent cash flow at low fees.

Non-Recourse Factoring

Non-recourse factoring means the factoring company bears the risk of customer repayment. If your customer declares bankruptcy, Bankers Factoring takes the risk. We provide you with bad debt protection in our factoring agreement – providing our clients with peace of mind. We are your factoring company that purchases your invoices on a non-recourse basis. When we buy your unpaid invoices, you will like how invoice financing work with Bankers.

What is the difference between Recourse and Non-Recourse Factoring?

Recourse, also called “full” recourse factoring, is when the client takes on the credit risk for protracted payment or bankruptcy from their customer (account debtor). Even though it doesn’t make sense, many time recourse versus non-recourse invoice financing cost costs about the same.

On the other hand, non-recourse factoring is when the factoring company takes on the credit for protracted slow payment or bankruptcy from the account debtor. This is how Bankers Factoring provides bad debt protection to our clients.

If you want to learn more, then visit our previous article, “What is Recourse vs. Non-Recourse Factoring?”

How to get same-day invoice factoring funding?

Same-day invoice factoring funding requires a completed funding application and the necessary documentation to expedite the process.

Invoice factoring transactions follow a standard sequence of events:

  1. Our client completes or delivers work to their customer, the account debtor, and creates an invoice.
  2. The client then submits a funding application with their invoices, A/R aging report, and the other 8 requirements to qualify for invoice factoring.
  3. Afterward, Bankers Factoring approves the funding application based on the creditworthiness of your customer, the account debtor, and their payment history.
  4. Bankers Factoring deposits up to 93% of the receivable value the same day as invoice approval and verification via bank wire.
  5. Once the account debtor pays Bankers Factoring, we issue the rebate, the remaining open invoice balance, less our factoring fee.

Once the rebate or discount is issued, the factoring transaction is completed. The process of same-day invoice factoring requires our clients to be diligent with their paperwork to ensure an efficient approval and funding process.

If you want to learn more, visit our previous article, “The Due Diligence Process of Invoice Factoring.”

What industries can use same-day invoice factoring?

A/R factoring can be used in any industry. In fact, the main requirement for invoice factoring is an open invoice from a commercial customer. So, for any business, from startup commercial cleaning companies to startup staffing agencies, we provide critical working capital for entrepreneurs.

Industries we offer factoring to include:

To learn more, visit “What Industries Use Invoice Factoring?“

Same-Day Non-Recourse Invoice Factoring Example

Company ABC sold Company XYZ $100,000 worth of merchandise with 2% 10 NET 60 payment terms.

Additionally, when company ABC cannot afford to cover at least two months’ worth of business expenses and outflows. Company ABC sells its $100,000 open invoice to Bankers Factoring, one of the top invoice factoring companies, with a factoring rate of 1.5% monthly and an initial cash advance via bank wire of $90,000 or 90%.

In 60 days, Company XYZ pays Bankers Factoring the open balance of $100,000. Bankers Factoring sends Company ABC a discount of $7,000, which is $10,000 less the 3% factoring fee over two months.

Receivable financing with Bankers turns unpaid invoices into same-day cash flow, and we take the credit risk, unlike a bank line of credit. We know you have a choice in invoice financing companies. With our low financing cost, we want you to choose Bankers for your working capital needs via invoice discounting or receivables financing to alleviate your cash flow issues.

Bankers wants to be your non-recourse invoice financing company. We are an award-winning accounts receivable financing company done right for entrepreneurs with decades of experience funding your payroll.

Ready for the owner-employees of Bankers Factoring to provide same-day invoice funding to your business? Call 866-598-4295 or go to Bankers-Factoring-Application.