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First Capital Provides Real Working Capital Solutions With Our Accounts Receivable Factoring Services In Irving, Texas and Most States Nationwide!
How Invoice Factoring Works
Looking for a financing option that’s not a typical loan? Invoice factoring, a form of commercial accounts receivable finance, has some huge advantages for small business owners. For example, you don’t need a lengthy business credit history to get set up with a financing facility. What’s more, factors typically don’t require personal guarantees. All in all, this makes factoring a great fit for young companies and even startups.
With factoring, you can receive advances against your invoices to use to make payroll, pay suppliers, purchase inventory, and expand your business.
Invoice Factoring can also allow you to offer the credit limits that many larger customers demand, without having to worry about interruptions to your company’s cash flow. Additionally, factoring can allow you to take advantage of trade discounts, as well as meet trade obligations and other expenses.
- Invoice Customers For Goods Sold or Services Rendered
- Submit The invoice to the Factoring Company or Factor
- Factor will Review Your Submissions and Create an Advance Schedule
- Advance Funds are Transferred Directly into Your Bank Account
- Factor Receives Payments Directly into the Lockbox from your Customers
- Factor Releases Reserve Balances Minus the Factoring Fees
Our Accounts Receivable Invoice Factoring Advance Parameters
Types of Businesses We Factor
- Staffing, Recruitment, Payroll
- Guard Services
- Construction (including Progress Billing and Paid when Paid)
- Government Contractors
- Transportation, Logistics, Automotive
- Real Estate Commissions
- Medical and Healthcare
- Janitorial & Cleaning
- Telecom & Technology
- Oil & Gas
- Distributors and Manufacturers
- Agriculture
- Business Services
Acceptable Invoices To Factor
- Creditworthy Customers
- Customer Must be a Business
- Short Payment Terms Preferred (30-60 Days ideal) Shorter or Longer Terms Possible
- Clear and Detailed Invoices
- Undisputed and Unencumbered, Free of Liens
- Timely Submitted
Invoice Factoring Guidelines
- Advance Rates Are Generally 75-95% Depending on the Creditworthiness of your customer
- Discount Rates (Factoring Fees) are typically 1-5%
- Tax Liens are Still Possible (You need to let us know on the application)
- Generally Takes 1-10 Days Depending on the Circumstances with 3-6 Days being the norm
Contact Us with your questions and request our FREE Guide To Factoring. Better yet, give us a call now. Let our team of factoring experts answer any questions you may have about invoice factoring. You’ll be glad you did.
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“When Banks Say No!” The Small Business Guide To Factoring