Invoice factoring is one of the solutions for short term issues in cash flow. Suppose you need cash right away, but customers can’t pay for services or goods until later; this is where invoice factoring, along with invoice financing, can convert your unpaid invoices into faster cash. But don’t consider invoice factoring as loan. It is a process in which you sell your invoices at a discount to any invoice factoring company; in exchange, the company will give you lump sum cash.
In turn, now the factoring company owns your invoices, and they get paid when they collect from your customer, who has a stipulated time period of 30 to 90 days. The discount rate can vary from 1-5%, depending on invoice amount. The pros in this case are easy approval, fast cash, and improved cash flow. However, it is also costly, you lose direct control, and a customer’s bad credits can derail your finances.
Here are three resources that can help you with your invoice factoring.
1. FactoringClub
FactoringClub is a web directory service that provides you with in depth information about invoice factoring companies, such as locations, descriptions, credit facilities, terms, services, industries served, contact information, features, and more. Any business owner looking for accounts receivable financing will find the right invoice factoring company to cater their needs on the FactoringClub site. It can help you find a company based on location, name, keywords, and industry.
Finding the right factoring company for your business requires common sense and research. You can find companies with specialties in accounts receivable financing, commercial finance, purchase order financing, invoice factoring, equipment financing, and asset based lending.
FactoringClub helps you save time and stress. People tend to rely on reviews to find realistic insights of companies, but reviews may not always be true; FactoringClub gives you the option to talk their reputable factoring brokers, who can provide you with an unbiased opinion about any factoring company listed on FactoringClub, or they can recommend you a factoring company based on your needs.
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After providing the details of your business, you can compare the cost of different factoring companies, which will determine a cost based on how much you intend to spend per month, expected average invoices, days outstanding, and customer credit.
2. American Receivable
American Receivable provides an excellent invoice factoring service with strong support, no extra fees, and good rates. It has solid eligibility requirements and customer support systems, and offers stellar features, non-recourse factoring, and no commitment minimums, which makes it great for business. You will have a dedicated account manager, who will have complete knowledge about your account and information required for processing.
American Receivable offers flexible factoring services for both short and long term business. They have made it easy for small businesses with credit ratings to qualify for factoring, in spite of rigid requirements. They focus on your customers’ creditworthiness, but not your business’s credit history or revenues, and they offer generous factoring terms that will help business with cash flow. They do not limit the number of invoices you can submit, and you can submit an application online, or through fax. The recovery days are up to 120 days.
3. Riviera Finance
Riviera Finance is an invoice factoring service that offers competitive rates, fast turnaround time, and various services, such as non-recourse factoring. They will buy any invoice, regardless of how overdue it is. You can start with Riviera Finance by filling out a form, or online submission. For small or medium sized businesses, they offer great security, which means they have freedom to explore new opportunities and expand.
They specialize in small business financing, invoice factoring services, business cash flow solutions, and accounts receivable management. They offer 24-hour guaranteed funding, skilled employees, application interfaces, and the highest cash advances in the industry; accounts are available online 24/7, no set up fees are required, and no long term contracts are mandatory. The only drawback is you have to pay a termination fee if you choose to stop factoring with them.
So try out any of these services to ease your cash flow and have improved business transactions.
