What is Invoice Factoring & How Can it Help a Business?
Invoice factoring is a type of financing service that provides funding to businesses for working capital purposes.
Also known as accounts receivable financing, invoice financing, invoice discounting, or accounts receivable factoring, invoice factoring is a simple, flexible lending alternative for small business owners to obtain working capital.
How does the Invoice Factoring process work?
Our three simple steps allows your business to grow, free from cash flow worries.
- 1. Invoice your customers like you normally do.
- 2. Send us the unpaid invoices you want to factor, we wire you the funds. Usually the same day.
- 3. We wait for payment. You get a cash advance to help you grow.
What Types of Industries Use Factoring to Improve Cash Flow?
Waiting for outstanding invoices to be paid is one of the most frustrating aspects of running a business. If you don’t qualify for traditional small business loans, 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.
Using Invoice Factoring as a form of business financing 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 invoice payments and delay everything else while the cash is tied up in the collection process. An invoice factoring agreement guarantees you will see cash for your invoices. At Charter Capital, our simple and easy accounts receivable financing process gives you a debt-free cash flow solution – with no waiting.
Factor Invoices With a Trusted Partner
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 Using an Invoice Factoring Company?
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. Invoice factoring companies convert these assets into immediate cash so you can meet expenses.|
|Frees up your valuable time. Outsourcing your accounts receivable to a factoring facility lets you focus on selling, producing and growing your business.|
|Brings you fast, steady and immediate access to working capital to keep your business operating at optimal cash performance.|
Are Invoice Factoring Services Suitable For All Businesses?
If your company is struggling because of extended credit terms or if it’s an uphill battle to obtain other types of business credit. Invoice financing can be ideal for your company, no matter if it’s large or small.
Looking for helpful Invoice Factoring Resources?
We want to help your business grow and have gathered some helpful resources to answer all your questions.
“Top 10 Reasons to finance invoices”
“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”
What Makes Charter Capital Different?
- Competitive Rates
- No Hidden Fees
- No “Maintenance” Fees
- Professional Staff
- Dedicated Account Executive
- Personalized Service
- Residuals Paid Weekly
- Assistance With Credit Decisions
- Advance Rates Up To 90% or more
- Daily Reporting of Receipts
- No Long-Term Contracts
- Same-Day Funding
- Customized Programs
What sets Charter Capital apart from other factoring companies is that we do not require you to have perfect credit to get an affordable factoring rate and we are a direct source of funds. Our requirements are easy to meet making it a simple process to get funded directly from us in a timely manner.
So, there’s no reason to wait! Call us toll free at 1-877-960-1818 or contact us today to find out how easy it is to set up a Charter Capital Receivables Funding Line. One of our account representatives will be happy to assist you.