What is Invoice Factoring?
Financial service that provides funding to businesses for working capital purposes.
Also known as accounts receivable financing, invoice discounting, or accounts receivable factoring, invoice factoring is a simple, flexible lending alternative for your company to obtain working capital.
Click here to see how it works.
3.
We wait for
payment.
You have cash
to grow
2.
Send us the invoices
you want to factor,
we wire you the funds.
Usually the same day.
1.
Invoice your
customers like
you normally do.
How does Invoice Factoring work?
Our three simple steps mean your business can grow
free from cash flow worries.
Why Factor?
Waiting for invoices to be paid is one of the most frustrating aspects of running a business. If you don’t qualify for traditional business loan, you face a major cash flow gap between billing your customer and getting paid. And cash flow problems are one of the main reasons for lack of businesses success.
Invoice Factoring is especially important for small businesses, so you can invest in needed equipment, pay vendors, or meet any needed business expense like payroll. The alternative, of course, is to go after your customer for payment and delay everything else while the cash is tied up in the collection process. Invoice factoring guarantees you will see cash for your invoices. At Charter Capital, our simple and easy accounts receivable financing process give you a debt-free cash flow solution – with no waiting.
What’s more, Charter Capital has earned a reputation for assisting companies just like yours for more than 20 years. Long term customer relationships and client referrals illustrate the tailored results of our personal, one-on-one service.
What are the benefits of Invoice Factoring?
The benefits are numerous!
For starters, invoice factoring:
Is an alternative source of business financing that eliminates many of the roadblocks posed by traditional bank loans. |
Does not require a business plan or tax statements, unlike a traditional bank loan. |
Is not a loan and does not show up on your balance sheet as debt. It is a financial transaction between a business and Charter Capital, and therefore does not include a bank. |
Frees up your working capital. For many companies, a significant amount of capital is tied up in accounts receivable. Factoring companies convert these assets into immediate cash so you can meet expenses. |
Frees up your valuable time. Outsourcing your accounts receivable lets you focus on selling, producing and growing your business. |
Brings you fast, steady access to working capital to keep your business operating at optimal cash performance. |
Looking for helpful Invoice Factoring Resources?
Is Invoice Factoring a type of business loan?
How Much Do Factoring Services Cost?
Small Business Recourse Factoring
The difference between invoice factoring and purchase order financing.
Frequently Asked Questions
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