Sell Your Accounts Receivable For Immediate Working Capital!
What is Invoice Factoring?
Accounts Receivable Invoice Factoring, also called "Invoice Financing" or "Accounts Receivable Financing", is a way for a business to secure quick and ongoing funding by selling its accounts receivable at a discount in exchange for immediate working capital.
Invoice factoring is NOT a business loan. There is no collateral or personal guarantee required and owner credit score is not an issue.
The amount of financing available for invoice factoring ranges from about $50,000 to well over $10 Million for legitimate current invoices. Capital is made available as a revolving line of credit and is based on the average monthly accounts receivable balance with a typical discount range of approximately 10%-30%.
invoice factoring is a smart strategy for businesses to have an ongoing source of working capital without the risk, collateral, and administrative burden typically associated with a business or personal loan.
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"Invoice Factoring Allows Business To Sell Current Accounts Receivable For Immediate Working Capital With No Collateral Or Personal Guarantee!"
Benefits of Invoice Factoring
Revolving & Scalable Line Of Credit With Low Risk & Low Impact On Balance Sheet!
There are several very nice benefits associated with Invoice Factoring including:
- Scalable Line of Credit
The amount of funds available when factoring receivables is directly proportional to the amount of legitimate current invoices the business has receivable. A factoring agreement is setup as a revolving line of credit allowing funds be accessed whenever needed. As the business increases sales, the amount of receivables increases so the funds available to the business also increases. This is virtually the only type of business funding that automatically increases as the company grows!
- Low Risk
No collateral is needed for invoice factoring and no requirement of the owner to guarantee repayment of the funds.
- No Negative Impact On Balance Sheet
Because invoice factoring is not a loan, neither the owner nor the business incurs any debt so there is no negative effect on the balance sheet. This leaves the business open to explore other business loan and financing opportunities without having to show existing debt on the books. And, if the receivables factoring is "non-recourse", it also eliminates bad debt from the income statement.
- Eliminates Collections Burden
Another nice benefit of invoice factoring is that it also eliminates the burden of collections from the business by passing it on to the factoring company.
Get The Help You Need!
At CyoGate, because our success is based on your success, we are always happy to help. Our professional team of Business Funding Specialists are available to help you find the best business loan and credit card processing options available.