Benefits to Invoice Factoring
You are Not Creating a Debt
You're taking the money owed to you from your customers that have not yet paid and turning it into working capital to use for your business.
Opportunity for Quick Cash
Factoring deals can be completed within 24 hours. And with the Invoice(s) being the only collateral, it is easy to apply
No Limit on How Many Times You Can Use It
Leverage one invoice or your entire A/R report. Only apply once and after you're on our platform you can factor as many invoices as you please.
Why We're Different
Unlike AR Factoring companies, we do not contact your supplier to receive payment from them. You are able to manage the money as you see fit and pay your supplier directly. We know business can be complicated, so this avoids losing a deal because your manufacturer sees that you are receiving financial help. We are non existent to your business associates and we allow you to continue operations as normal.
Accounts receivable is the amount of money owed to a company by their customers who purchased goods or services on credit. Having a large accounts receivable costs you money when you factor in time, financing and opportunity cost. Every unpaid invoice you have represents your money sitting in someone else's bank account. Smart business owners are always looking to improve cash flow and turning your unpaid invoices into working capital is a great way to do exactly that.
Invoice Factoring Payment Structure
How Factoring Your Invoices Can Increase Your P&L
Invoice Factoring is not only useful for increasing cash flow, it can also help you increase your profit margins. Instead of waiting on customers to pay you, take those sales and turn a profit. Below we will provide an example of how this works.
Lets Use a manufacturing business as an example, They are making 50% profits and have $100,000 in unpaid invoices. Instead of waiting 30 - 60 days to get paid on their sales the owner factors the invoices for $85,000 and buys more inventory. In 30 days the business sees an extra $127,500 in sales with a profit of $42,500 (50%). The $100,000 in invoices turned into $127,500 in the same time that would have been spent waiting to get paid. That's an extra 27.5%!! Over the course of 12 months this can lead to multiplying your profits by over 6 times!! YES 6 TIMES!!The graph to the right shows how an extra 27.5% a month can exponentially grow your business.
We understand that not all business have such high profit margins, so lets use another example to prove the concept with lower profits. This time lets use a retail store. They are making 30% profits and have the same $100,000 in unpaid invoices. The owner factors the invoices for $85,000 and purchases more supplies. In 30 days the business sees an extra $110,500 in sales with a profit of $25,500 (30%). The $100,000 in invoices still turned into $110,500. Now instead of waiting on payments, the business gets extra 10.5% on that money!! The graph to the right shows how this retail store could more than double their profits over 12 months by factoring their unpaid invoices.