Don’t let slow-paying customers slow your business down.
Understanding invoice factoring
Invoice factoring is a type of invoice financing in which a company sells its unpaid invoices (accounts receivable) to a third-party factoring company (factor) in order to gain urgent cash flow to match its business requirements.
Factoring companies buy your invoices at a percentage and provides you the invoiced amount immediately, and collects the payment later, directly from your clients. Invoice factoring is also termed receivable factoring and debt factoring.
Factoring in detail
As mentioned earlier, when a third party factoring company buys your company’s invoices at a fixed percentage, it is referred to as factoring. Since many clients take a longer time than expected to pay their dues, factoring helps your business with regular cash requirements and to maintain its growth and performance.
Selecting the number of invoices to be factored in completely depends upon the company. Some companies even factor in all their invoices, while some prefer to factor only those invoices that are consistently paid later.
Scale your work!
Invoice factoring is used to fulfill a company’s cash requirements in order to pay its staff, take new orders from clients, and work on the previous or pending orders as a company keeps matching and satisfying its customer’s expectations and demands, its reputation, and value increase in the market. More and more customers start getting attracted to the company, which helps to scale the sales and revenue.
One of the best advantages of factoring is that you instantly get the cash on your invoice. The factor takes the responsibility of collecting the payments from your customers on your behalf.
Our invoice factoring services
Being one of the best factoring companies, our factoring services extend to several industries. Some of the factoring services we provide includes:
Authentication of invoices
Every document provided to us, like invoices, bills, financial documents, etc., is cross-checked and verified. Each document is properly analyzed so that there is no chance of any error or threat in the future. This may be a reason for delayed payments.
Invoice data entry
Every bill received by us is carefully examined and verified before it is entered into our system. After verification, the next step is to enter the data in our invoice discounting software, which makes it easily accessible and can also be analyzed in a proper way. All the data is safe as it is protected by a password and is sent to you in the format you like.
We take care of your unpaid invoices on your behalf. When you sell your invoices to us, you get instant funding to run your business smoothly. We serve both recourse and non-recourse invoice factoring. We also provide a reasonable and attractive value for your invoices.
This type of invoice factoring is also known as payroll factoring. It helps convert your unpaid invoices into instant money, which can help you to manage services and overcome the problems arisen due to irregular cash flow. Generally, we provide this particular service to new start-ups, IT, and many more industries.
The discount provided at the unpaid invoices is kept confidential. When it comes to invoice factoring, one of the major things to keep in mind is that a factoring company never discloses personal data.
Our group looks at whether all work is conducted according to the concurred quality principles or not. We guarantee that all game plans of documents and records are secure, simple to draw out, and legitimately positioned.
We have an efficient database system in which all the data is stored safe and secure. We maintain an electronic record of all data your company has provided, and it can also be retrieved whenever needed. Furthermore, we offer you an analysis of your customers based on their payment cycles, which can allow you to run your business accordingly.
Advantages of factoring
Immediate cash flow
Keeps companies running
Cheaper than a bank loan
Reduces the workload of staff
What companies use factoring?
Organizations utilize the services of factoring companies to ease their cash flow. From single-individual and small to midsize businesses to around 500 enterprises, several businesses utilize factoring services.
For each invoice you sell to a factor, you get instant cash as a factoring agency factor invoices for you.
Factoring companies offer two types of factoring services: recourse and non-recourse invoice factoring.
How does invoice factoring work?
Basically, invoice factoring works on two major concepts that include – the factoring cost and types of invoice factoring. The factoring cost or the money received from the third party factoring company is based on every single customer invoice. The more invoices a company sells, the larger the amount that is received. Secondly, there are two types of invoice factoring – recourse and non-recourse factoring.
Steps involved in invoice factoring are:
- Raising invoice: Businesses raise customer invoices for the services rendered by them.
- Factoring: The invoices are sold to factoring companies that pay you the invoiced amount immediately. Sometimes, the payment is 100% of the value of the invoices.
- Credit checks: The factory company checks the creditworthiness of the customers (for whom the invoices are raised) before making the payment.
- Collection: Factoring companies collect the invoice payment from the customers.
Our mission is to help you meet all your monthly commitments by streamlining cash flow through our invoice factoring services.