Transform cash flow instantly with invoice factoring genius

Unlock the potential to transform your cash flow instantly by exploring invoice factoring options that offer immediate financial relief and growth opportunities for your business—browse options and see how they can revolutionize your financial strategy today.

Understanding Invoice Factoring

Invoice factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party, known as a factor, at a discount. This process provides businesses with immediate cash flow, which can be crucial for maintaining operations, investing in growth, or simply ensuring timely payment of obligations. Unlike traditional loans, invoice factoring does not create debt on the balance sheet, making it an attractive option for businesses looking to improve liquidity without incurring additional liabilities.

How Invoice Factoring Works

The process of invoice factoring is straightforward. A business submits its invoices to a factoring company, which then advances a percentage of the invoice value, typically between 70% to 90%, to the business. Once the invoice is paid by the customer, the factoring company releases the remaining balance to the business, minus a fee for the service. This fee can vary depending on several factors, including the creditworthiness of the business’s customers and the volume of invoices being factored.