WHAT IS INVOICE FINANCING?
Accounts receivable financing lets you get paid for your outstanding invoices right away—for a fee. A loan against (Asset Based Loan) or purchase of (Invoice Factoring) accounts receivables. Invoice financing allows you to access quick cash against current unpaid invoices.
Accounts receivables financing companies advance you cash collateralized by your business’s outstanding invoices—giving you an excellent way to put more money into your business right away. With invoice financing, you could get a fast advance of about 85% of the value of your invoices, with most of the other 15% paid to you later. It’s the perfect solution to cover for
late-paying customers or cash flow slowdowns
As Little As 24 Hours
About 3% Plus A Percentage Per Week Of The Outstanding Balance
Customer Pays The Invoice, You Receive The Remaining 10-50% Reserve Amount, Minus The Fees
50% - 90%
Of Unpaid Invoices
Pros & Cons
No need to wait for invoice payment
Invoices serve as collateral
Based on credit of invoiced business
Your credit score is irrelevant
Higher fees than other forms of financing
May adversely effect client relationships
May carry additional fees for cancellation
Costs more with the longer client takes to pay
Any business with a business-to-business model can qualify for invoice financing, as long as they currently have outstanding receivables.
Here’s the deal.
These lenders don’t care as much about your revenue, profitability, or time in business.
Since your invoices will act as the loan’s collateral, lenders just want to make sure the invoices make sense for them to finance. The rest of your business isn’t too important.
The maximum amount you can qualify for depends on the total amount and quality of your invoices, as well as on your creditworthiness. It is important to note that some accounts receivable financing lenders take a look at your credit report, too.
Most Businesses Who Qualified Had:
TIME IN BUSINESS
6 Months Minimum
What Documents Will I Need To Apply?
Voided Business Check
Profit and Loss Statements
Business Tax Return
Personal Tax Return
Business Debt Schedule
Applying Does Not Affect Your Credit!
Disclaimer: The above information is provided as a guideline. Some loan conditions may fall outside of these parameters. We recommend that you speak with one of our advisors before taking any course of action based on this information.