Invoice Factoring |
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What is Invoice Factoring?
Invoice factoring, also known as accounts receivable factoring, is an alternative form of business financing. Through invoice factoring, a business is able to free up money tied to outstanding invoices and thereby increase its working capital.
How does Invoice Factoring Work?
In invoice factoring, a business sells its accounts receivables (invoices) to a factoring company at a discount. In exchange, the company selling the invoices gets an immediate cash advance minus the factoring fee on all outstanding bills of sale. The factoring company on the other hand, makes its profit by cashing in on the full value of the invoice.
Invoice factoring is particularly suitable for businesses that need a quick or consistent source of capitol. Usually this applies to newly formed businesses, where the costs of operating and expanding often far exceed income, or a seasonal business where income is either slow or nonexistent.
Factoring Credit Card Invoices
Credit card factoring is a form of invoice factoring whereby a business can receive a cash advance based on future credit card sales. At Advance Factor, we excel in providing business cash advances up to $250,000, through credit card factoring.
How will Credit Card Factoring Work for You?
Whenever a customer completes a sale via Visa, Mastercard, or American Express, we will purchase a portion of that sale at a discount. The factoring fee will then be used to pay back the cash advance over time.
Since repayment is dependent on sales volume, you will enjoy a more fluid cash flow. Moreover, by factoring credit card invoices, you avoid the pressure of having to always keep up with scheduled payments, even when sales are down..
To be considered for a business cash advance, your company must process at least $2,500 in credit card sales via Visa, Mastercard, or American Express.
You can fill out our quick online application or for more information call...
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