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.
Click here to see how it works.
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Send us the unpaid invoices you want to factor, we wire you the funds. Usually the same day.
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Invoice your customers like you normally do.
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We wait for payment.
You get a cash advance to help you grow.
How does the Invoice
Factoring process work?
Our three simple steps allows your business to grow, free from cash flow worries.
What Types of Industries Use Factoring to Improve Cash Flow?
- Trucking & Freight
- Staffing
- Manufacturing
- Security Firms
- Consulting & Service Firms
- Oil and Gas Services
Why Factor?
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:
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Is an alternative source of business financing that eliminates many of the roadblocks posed by traditional bank loans. |
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Does not require a business plan or tax statements, unlike a traditional bank loan. |
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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. |
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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. |
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Frees up your valuable time. Outsourcing your accounts receivable to a factoring facility lets you focus on selling, producing and growing your business. |
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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?
“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”
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