“We help convert your outstanding invoices into working capital so you can focus on doing what you do best -- growing your business.”
The majority of invoices have payment terms set between 30-90 days.
This means that from the first day an invoice is sent to a customer, you won’t see that money for at least a month.
These long payment cycles place many small business owners in a persistent financial strain, making it challenging to meet daily operational costs and investment opportunities.
In these situations, you can turn to invoice factoring for help.
What is Invoice Factoring?
Invoice factoring allows business owners to sell outstanding invoices to a factoring company in exchange for upfront cash.
Lenders can give you an advance of up to 90% of the total invoice value depending on the creditworthiness of your invoiced customers. The immediate cash flow allows you to pay for day-to-day expenses, equipment and inventory purchases, and other business needs.
You’ll receive the remaining balance (minus a small factoring fee) once your customers pay their invoices. With invoice factoring, you don’t have to wait for 30 to 90 days to receive payments due to you. Once approved for invoice factoring, you can get funded within 24 to 48 hours.
Difference between Invoice Factoring and Invoice Financing
The primary distinction between invoice factoring and invoice financing is who collects on the business's unpaid invoices.
In invoice financing, the customer retains complete control of collections. On the other hand, the factoring company purchases the outstanding invoices and takes over payment collections.
These late payments often leave you cash-strapped, preventing you from paying your staff, settling your rent, or pursuing essential business opportunities. At Invoice Financing USA, we make it easy for entrepreneurs to access additional working capital when they need it.
Learn how invoice factoring can help your company. Get in touch with our financial advisors today!