Invoice factoring is a financial service where a company sells its unpaid invoices to a third-party called a factor. The factor provides immediate cash to the company, allowing them to access funds that would otherwise be tied up in unpaid invoices. In return, the factor collects the payment from the customers who owe the company.
Full definition
To qualify
for invoice factoring at BlueVine, businesses need to be at least three months old with $ 10,000 in monthly revenue.
BlueVine is a recourse
invoice factoring company, which means that your business will be responsible for covering any outstanding balances if your customers fail to pay.
As a small - business owner, you can turn your unpaid customer invoices into fast cash
with invoice factoring and its closely related counterpart, invoice financing.
After reading about all the benefits
of invoice factoring for small business, you have decided to give this financing option a shot.
The Southern Bank Company's altLINE offers
invoice factoring services to businesses with a free application, same - day funding and competitive rates.
Business owners may want to
consider invoice factoring if they have business or government customers, or a merchant cash advance if they have a lot of credit card receivables.
We're an innovative technology company helping American and Canadian small business owners improve their cash flow
through invoice factoring and financing.
BlueVine
provides invoice factoring up to $ 2.5 million, making it a good option for businesses that either have a high volume or dollar - amount of invoices.
While you can use an OnDeck loan or line of credit cover cash flow gaps from unpaid invoices, BlueVine offers a specific
invoice factoring product with a payment schedule that makes more sense.
Invoice factoring allows small business owners to sell their invoices that are due in the future at a discount for cash upfront.
BlueVine is a
recourse invoice factoring company, which means that your business will be responsible for covering any outstanding balances if your customers fail to pay.
BlueVine offers a
specific invoice factoring product, which allows business owners to receive advances on invoices up to $ 2 million.
We recommend BlueVine over Fundbox if you have a high volume or dollar - amount of invoices, as BlueVine offers
invoice factoring up to several million dollars.
If you don't know
how invoice factoring can harm you, you might be careless enough to make some serious mistakes.
There are more complex financing products
like invoice factoring and merchant cash advances for businesses with particular needs.
Furniture invoice factoring solutions were developed using Factor Funding Co's knowledge and experience of the challenges facing companies in the furniture industry.
Terms and features of
invoice factoring contracts vary between business owners, industries, and factoring companies, but here is a glance at the average terms and features.
Business owners may want to consider
invoice factoring if they have business or government customers, or a merchant cash advance if they have a lot of credit card receivables.
Other common fees: You may also see other loan fees such as documentation fees, monthly or weekly fees and
invoice factoring fees.
Factor Funding Co. has been working with small and medium - sized companies across the country to
design invoice factoring solutions to convert uncollected accounts receivables into instant working capital.
Asset Finance requires assets of course and invoice discounting or
invoice factoring depends on the business providing products or services on credit, which excludes much of our high street.
Here's what you need to know
about invoice factoring and invoice financing, plus some options on where to find financing.
Unlike bank underwriters, Factor Funding
Co. invoice factoring does not require financial statements or a lengthy credit or business history.
However, accounts receivable and invoices issued to reputable customers are assets too and they can be used to generate a cash advance
via invoice factoring or to secure a loan through invoice discounting.
Invoice factoring involves the selling of invoices whereas invoice financing involves the borrowing of money with invoices as collateral.
Another popular choice, Fundbox's product operates more similarly to a line of credit than a traditional
invoice factoring option.
To find out
what invoice factoring can offer your company, call us today at 866-717-2274 or download our receivable factoring application form.