![]() We provide you with nearly the full invoice amount until your customer has settled. You issue your invoice as you normally would and submit it to us. The financing of your credit is organised through a third party, the factor. ![]() With factoring, you can offer longer payment periods to your customers. Optimise your contract terms by also taking out credit insurance.Strengthen the security of your trade receivables portfolio.Satisfy financing needs that may vary, for example due to peak activity periods.Give your customers greater flexibility.Contact us today to learn how factoring can help you overcome your cash flow challenges.Four good reasons to choose our factoring & credit insurance package If your customers take more than 30 days to pay their invoices, factoring accounts receivable could be the right solution for you. Why wait on your customers? You can get the cash you need today and then let the factoring company manage the receivables process. Many businesses don’t have the working capital on-hand to deal with a 30, 60, or even 90 day wait for invoices to get paid. Do your customers take more than 30 days to pay?įactoring financing is an appealing solution if your customers take more than 30 days to pay their invoices. If you don’t meet these criteria, you may not be able to qualify for factoring solutions. Most factoring providers in the United States only work with domestic companies that are incorporated. Is your company incorporated and operating in the United States? Again, factors are more interested in the credit of your customers, not in your credit history. The good news is that even if you’ve been denied bank financing in the past, you can still get approved for factoring funding. Many business owners look to bank financing before they turn to a factoring solution. Has your business ever been denied or experienced limited bank financing? If your monthly sales are less than $5,000 per month, you may have difficulty getting approved. Most factoring companies have a minimum monthly sales requirement for factoring approval. Are your sales at least $5,000 per month? Do your customers seem like the kinds of businesses who have solid credit, good references, and reputable relationships with their vendors? If so, you may be a good candidate for factoring. After all, it’s your customer who will ultimately pay the invoice. Are at least some of your customers credit-worthy businesses?Īs mentioned, factors are more concerned with your customers’ credit than they are with your credit. Remember, the factor will be collecting on your invoice, so they need to know exactly when the receivable is due. Also, your invoices need to have specific terms. If you sell to consumers, factoring may not be a good option. You give customers 30 or more days to payĭoes your company sell products or services to other businesses on terms?įactoring is almost always available only for B2B invoices.You have limited or no access to bank financing.Your sales are $5,000 or more per month.Even if you have a rough credit history, factoring financing may still be a viable option. Rather, approval is based on the creditworthiness of your customers. Perhaps the best part of factoring is that the service isn’t based on your credit. You can get advances on a large percentage of your receivables within days of sending a new invoice so you have cash available to reach your business goals. Factoring helps you get your cash flow on a more predictable schedule. That leaves one option: factoring financing. By the time it’s approved, your cash flow need may have resolved itself. Also, banks can take months to approve loan applications. What to do to resolve your cash needs? You could apply for a bank loan, but it can be difficult to meet the underwriting requirements. Unfortunately, that makes it challenging for you manage and grow your business. Most customers will take as much time as possible to pay those bills. That’s especially true when your customers pay their invoices on net-30 or even net-60 terms. Would you like regular cash flow?Ĭash flow is a major challenge for many businesses. And every day that your invoices don’t get paid, your goals slip further and further away. You may regularly have receivables that don’t get paid for 30, 60, or even 90 days. The problem is, your customers don’t always pay on your preferred schedule. You need it to pay employees, buy materials, fund marketing campaigns, and more. To reach your goals, though, you need cash. Invoice Factoring Requirements - Does Your Business Qualify for Factoring Services?
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