Business Financing Programs
What is Invoice Factoring?
Factoring is a way where companies can receive funds for the work that they have done by selling their invoices to funding companies. Usually, the funding companies will forward a large percentage (90%+) of the funds and then collect the funds from the customer. Upon payment, depending on how long it took to secure the funds from the client drives how much of the remaining percentage is paid to the business owner.
*it is important to note that factoring companies require to be in a 1st position.
Factoring is a way where small business owners can sell their invoices and have up to 95% of the invoice funds sent to the business owner. The factoring company is responsible for collecting the funds and in turn takes a small percentage of funds. This is effective for many companies like trucking etc. because the small business owner does not have to chase customers from paying their invoices.