Q & A about: INVOICE FINANCING
A: A commercial finance company that specializes in the purchase of invoices for cash.
A: Companies that find cash flow as a recurring problem often can't afford to have cash tied up in receivables 30-45 days. They need the cash to meet immediate present financial demands of their business.
A: NO! Factoring is defined as the purchase of a company's receivables as opposed to a loan using the receivables as collateral.
A: Banks often have restrictive lending requirements relating to cash flow, profitability, equity, and years in business which prohibit them from making loans. Factoring companies are not in the lending business. The decision to purchase invoices is influenced by the quality of your customer base and their performance as opposed to years in business or financial strength.
A: You prepare your customer's invoice and forward it to the factor for an immediate cash advance. The factor bills the invoice to your customer and then follows up on it to ensure receipt of payment.
Q: HOW QUICKLY DO I GET PAID?
A: Most factors pay within 24 to 48 hours of receipt of the invoice and any required supporting documentation.