What is Invoice Factoring?
Invoice Factoring is financing of Accounts Receivable. It is a great help to businesses which primarily or exclusively serve business (B2B) or government (B2G) clientele who pay on net 30 days or longer terms. When you factor one of your net 30+ invoices, you can be paid almost immediately. A factoring company will pay you on the invoice (minus a very small fee) and then collect from the company to which you originally sent the invoice.
Non-Notification Invoice Factoring
Non-Notification Invoice Factoring works like regular invoice factoring, except it allows you to collect on your invoice instead of the factoring company. This type of factoring is perfect if you do not want your clients to know you are factoring your invoices.
Good for Short-Term Working Capital
Invoice factoring is an ideal tool for businesses that need a short-term working capital solution. It accelerates cash flow and brings in much needed funds without having to apply for a loan. Invoice factoring works great for small cash crunches. It is not suited for major capital investments or larger scale projects.
Let Priority Lending Handle Invoice Factoring For You
Priority Lending will fast-track the factoring process for you and arrange a factor/lender in the shortest time possible – usually within one business day. Your Priority Lending Financial Advisor will start the process by getting to know your business, your products/services, your clients, and your credit profile. Once this is done, you will complete some paperwork and the money will be transferred to your account in less than 48 hours in most cases.