What is Invoice Factoring?
Invoice factoring is an effective form of business financing, it’s self renewing and has rates as low as 0.5%. Rather than waiting 15, 30 or 60+ days for invoices to be paid, a factoring company will purchase your outstanding invoices and pay them in as little as 24 hours. Cash now, for invoices due in the future means your company can use the cash to cover business expenses.
Let’s consider some cash flow challenges. Do any of these situations sound familiar?
• Have you offered your customers credit terms, which means they pay up to 60+ days after an invoice has been issued?
• Has the bank said NO to your business loan?
• How about your line of credit? Is it at capacity?
• Is your cash flow becoming a constant challenge?
• Is your business credit too low to qualify for a traditional business loan?
• Does your company struggle to meet payroll?
Late payments can quickly cripple cash flow and bring a small or medium business to their knees. If these challenges sound familiar to you, invoice factoring could be the key to get your cash flowing.
Unlike a bank loan, the qualification process for invoice factoring only requires basic company information and can be completed in as little as 3 days, once the application is accepted.
Fast cash – no more waiting on slow paying clients
The factor will typically pay you within 24 hours after receiving your invoices. No more waiting for 15, 30 or 60+ days.
Use your own receivables as cash
Because you are using your own receivables, factoring will not show up on your balance sheet.
Imperfect Financial Statements – No Problem
Qualification for factoring is based on the creditworthiness of your customers, not your credit.
Accounts receivable managed by experts
The Factor’s professional A/R team manages the receivables that you factor, saving you time and A/R management expenses.
Reduce the stress of constrained cash flow
Factoring your invoices and getting immediate cash reduces the stress of late payment, the inability to pay taxes or meet payroll.
Waiting for customers to pay their invoices may be a large contributor to your company cash flow crunch. Invoice factoring offers fast payment of your invoices, which can help avoid this situation.
How Factoring Works
The process is fast and efficient: Our goal is to process your request to factor as quickly and simply as possible. For more questions, read our FAQ’s.
F5 Financial serves companies in diverse industries
Companies of all sizes, from small start up businesses to Fortune 500 corporations, choose factoring as a cash flow tool. Not only all sizes, but also many industries benefit from this type of alternative financing:
• Food Processing
• Custom Brokers
• Government Contractors
F5 Financial serves companies in diverse circumstances
What some traditional lenders consider to be liabilities, we simply view as a client’s way of doing business. That is why we finance:
• Fast-growth companies
• Seasonal industries
• Spot sales
• Customer concentrations
• Undercapitalized businesses
• Leveraged buy-outs
• Selling terms to Net 60+
• Tax liens
• Supplier payment requirements
• Tri-party agreements