HOW DO THEY WORK?

Invoice factoring is an agreement that advances you up to 90% of the value of the unpaid invoices from approved customers within hours of submitting them. You then get the remainder, less fees due, when the customers pays the invoice.


WHAT DO THEY COST?

While invoice factoring can be somewhat expensive compared to traditional term or line options, it can be very cost-effective compared to other products that have a factor rate, like merchant cash advances. This is because invoice factoring is secured by tangible invoices, while merchant cash advances mainly project your future revenue based on prior performance and are therefore much less secure. Our invoice factoring goes as low as 15.6% APR.


WHEN WOULD THEY MAKE SENSE?

Businesses with a business-to-business or a business-to-government model and steady outstanding receivables might want to explore invoice factoring. For businesses that have customers that don’t pay back quickly enough to utilize that much needed working capital, invoice factoring will help improve your cash flow and smooth out your monthly operations.


WILL I QUALIFY?

Businesses that have at least a 530 FICO score, $40,000 in monthly revenue, and credit-worthy customers generating a yearly gross revenue over $10,000,000 can qualify for our invoice factoring programs. All that you would need to apply besides the normal credit application and 3 months of your most recent business bank statements is an up-to-date accounts receivable (AR) aging report.