Get Same Day Cash on Your Invoices
Get Paid the Same Day You Submit Your Invoices
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? Same-day invoice factoring for small businesses, startups, and entrepreneurs is an excellent solution to your lack of cash flow.
Same Day Invoice Factor Financing helps financially distressed businesses late on bills, IRS Tax Liens, and lacking 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 bank account by day’s end.
Invoice Factoring is a method of debt-free commercial financing accessible to businesses with accounts receivables or open invoices to their commercial customers. Join the team of small business owners using Bankers Factoring same-day invoice factoring solutions.
What is same-day invoice factoring?
Same-day invoice factoring is business financing. A company (the client) sells its open invoices to Bankers Factoring, the invoice factoring company. The asset purchase of open receivables is in exchange for up to 92% of the invoice value on the same day as approval.
By selling your open invoice to major commercial customers, you forego the wait of up 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?”
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.
- Meet payroll on time
- Receive up to 92% 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 .75% to 5%, depending on several 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 pricing
We reward small businesses for rapid growth and 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 has the opportunity to 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 short or slow pays or declares bankruptcy, Bankers Factoring takes the risk. We provide you with bad debt protection in our factoring agreement – providing our clients peace of mind.
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).
Non-recourse factoring is when the factoring company takes on the credit for protracted payment or bankruptcy from the account debtor. This is how Bankers Factoring provides bad debt protection to our clients.
Visit our previous article to learn more, “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:
- Client completes or delivers work to their customer, the account debtor, and creates an invoice.
- The client submits a funding application with their invoices, A/R aging report, and the other 8 requirements to qualify for invoice factoring.
- Bankers Factoring approves the funding application based on the creditworthiness of the account debtor.
- Bankers Factoring deposits up to 92% of the receivable value the same day as invoice approval and verification.
- Once the account debtor pays Bankers Factoring, we issue the rebate. The remaining open invoice balance is 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.
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 virtually any industry. The main requirement for invoice factoring is an open invoice from a commercial customer. Any business from startup commercial cleaning companies to startup staffing agencies, we provide critical working capital for entrepreneurs.
Industries we work with:
- Payroll and staffing
- Transportation
- Telecommunications
- Oil and Gas
- Government Contracting
- Wholesalers and Importers
- Wine and Spirits
- Agriculture/ PACA
To learn more, visit “What Industries Use Invoice Factoring?“
Same Day Non-recourse Invoice Factoring Example
Company ABC sold $100,000 worth of merchandise to Company XYZ with 2% 10 NET 60 payment terms. Company ABC cannot afford to cover at least two months’ worth of business expenses and outflows.
Company ABC sells their $100,000 open invoice to Bankers Factoring, with a factoring rate of 3% monthly and an initial cash advance of $90,000 or 90%.
Company XYZ pays Bankers Factoring the open balance of $100,000. Bankers Factoring sends Company ABC a discount of $4,000, which is $10,000 less than 3% over two months.