Invoice Factoring
Invoice Factoring pays a company a upfront percentage of accounts receivables owed to them so they do not have to wait 90 days or more to get paid. This frees up working capital, increases cash flow and raises overall sales and profitability for the company.
Invoice Factoring is not a loan. It is the purchase of accounts receivables. Invoices that are created by the purchases of customers of companies are purchased by the lender also known as a “Factor”. This allows a company to get the funds it needs upfront and quickly instead of having to wait up to 90 days to get paid from the customers it sold to.
BENEFITS OF INVOICE FACTORING:
1) frees up working capital
2) increases cash flow
3) PAY EMPLOYEES INCREASE PROFITS AND MARGINS