Invoice Factoring is Both Fast Funding and Bad Debt Protection
Table of contents
- Invoice Factoring is Both Fast Funding and Bad Debt Protection
- Invoice Factoring Turns Your Accounts Receivable into Fast Cash for a Small Fee
- Factoring Services for Fast-Growing Companies
- What is an invoice factoring service?
- What is the difference between invoice factoring vs invoice financing?
- What products do factoring companies provide?
- How does an invoice factoring service work?
- Factoring Financial Products and Services
- Bankers Factoring Non-Recourse Factoring Services
Invoice Factoring Turns Your Accounts Receivable into Fast Cash for a Small Fee
Receivables Factoring Services Summary
Invoice factoring is a financing option that can help your small business grow. It is an alternative to traditional bank loans or a community bank line of credit, which are usually unavailable to most small businesses. With invoice financing, your company can access the cash you need to meet payroll, pay bills and vendors, expand your operations, and grow your business—without waiting for formal loan approval. Cash flow problems go away when you choose the right invoice factoring company.
When a factoring company purchases your outstanding invoices, you receive same-day funds via this form of accounts receivable financing. Selling invoices to a factoring company like Bankers Factoring gives you working capital and credit protection.
Please read what does factoring your invoices mean and factoring companies typically charge a flat fee or a daily fee.
Instead of waiting 30-60 days to get your invoices paid, invoice factoring companies get you same-day funding the day you invoice your larger business (B2B) or government (B2G) customer-turn customer invoices into critically needed working capital.
Please read why use invoice factoring and how much does invoice factoring cost?
Factoring involves selling your invoices before they are due so that you get paid immediately. Invoice Factoring is typically cheaper than invoice financing (if you include the cost of a credit department) because there is less risk involved—you do not have to wait until the end of a cycle before getting paid.
Factoring Services for Fast-Growing Companies
You have a business, and you are ready to grow. You need some cash to do it, but your bank is not as excited about your idea as you are. How can you get the money you need? Meet your financial obligations with Bankers Factoring.
Bankers Factoring Non-Recourse Factoring Services can help you access working capital quickly by providing interim financing solutions for invoices from your customers who have yet to pay.
Invoice factoring services are a great way to get the cash you need to keep your business running. If you are considering applying for an invoice factoring program, complete an online funding application now or call so you can understand the invoice factoring process.
What is an invoice factoring service?
An invoice factoring service is a financial product that businesses use to get money by selling their accounts receivable. It is a quick and easy way to get cash without waiting for customer payment. The most common use for invoice factoring is to pay suppliers who have delivered goods or services to your business. However, it can also pay employees who provide contracted services.
Keep reading the full article, Sell Your Invoices to the Best Factoring Company versus other factoring companies.
What is the difference between invoice factoring vs invoice financing?
Invoice financing is like invoice factoring, but it works slightly differently. Invoice financing involves a bank or asset based lender lending money against your invoices instead of selling them outright. This means you still own the invoices and can collect them yourself versus a factoring company like Bankers collecting payments from your customers. Invoice financing usually costs slightly less than factoring because you borrow money from a bank or other lender instead of getting paid for the value of your invoices upfront. Invoice factoring and invoice financing are sometimes used interchangeably but there are subtle differences.
We have special factoring programs for professional service firms.
What is Invoice Factoring?
- Invoice factoring involves giving money to a factoring company in exchange for the right to collect outstanding invoices from customers. The factoring company then pays you back the funds it receives when customers pay their unpaid invoices. You can receive up to 96% of the invoice amount.
- Invoice financing involves providing a loan directly to a business, which it then uses to pay off its suppliers and other creditors out of its cash flow rather than waiting for customer payments before paying them off in full (or at all).
Keep reading the full article, How Invoice Factoring Works.
What products do factoring companies provide?
Factoring companies provide several services to help your business grow faster and more efficiently:
- They allow you to get paid faster by purchasing invoices at a discount with a cash advance of 80 to 93% of the invoice amount face value.
- After your customer pays, you get the factoring reserve of 7-20% less the factoring fee.
- Free background checks and credit checks on your prospects and customers per our factoring agreement.
- Worrying about invoice due dates is a thing of the past with our low invoice factoring cost.
- They allow you to manage cash flow by collecting payments on time so that you do not end up paying interest on late fees.
- Bankers Factoring provides bad debt protection – eliminating threats of uncollected receivables.
How does an invoice factoring service work?
Invoice factoring services give small businesses money in exchange for the right to collect payments on their invoices. This can result in a cash infusion for businesses that need it and allow them to focus on growing their business rather than having to follow up with customers about payment after the sale.
Factoring companies act as a funding source and provide bad debt protection between your company and your customers, so you do not have to collect payments. This makes it easier for you to focus on growing your company when you pick from among the best factoring companies.
Turned down for a bank business loan, SBA loan, or already have an SBA loan and need more working capital? We have special programs for small business loan turndowns, a bruised credit score, and we can work with the SBA on a subordination agreement. This is just another reason we have been voted the best factoring company.
Factoring Financial Products and Services
Receivable factoring costs a small business owner a small factoring fee, but the benefits are enormous.
Factoring is a financial service that converts your accounts receivable into cash quickly and easily. The factoring company takes over your accounts receivable, collects payments from your customers, and then pays you. Factoring companies charge a percentage of the total amount they receive from your customers to provide this service.
To qualify for invoice factoring is easy with our fast application process and funding proposal within 24 hours with a low factoring cost, no hidden fees, and business financing that costs about the same as swiping a credit card. In addition, invoice factoring services give you business capital without dilution of your equity.
Bankers Factoring Non-Recourse Factoring Services
You need a fast way to get cash from your invoices without taking on new debt or selling off assets—and that is where Bankers Factoring comes in! With Bankers Factoring, you can secure funding for invoices without your bank’s approval. And because it is non-recourse financing, we take the bankruptcy and insolvency risk. So, if something goes wrong with one of your factor invoices (or if it turns out not to be collectible), we take care of it!
We hope you choose Bankers Factoring as your invoice factoring company; awarded one of the best invoice factoring companies in 2022 and 2023 with low factoring fees, and we take the credit risk, unlike other invoice factoring companies. Turning unpaid invoices into working capital, we want to wire you your money into your business bank account today to fix your cash flow problems.