Is your business ready to grow, but not ready for all the upfront costs that are associated with it? Invoice factoring can cover those costs for you.
Accounts receivable factoring, also known as invoice factoring, is the process of selling your active invoices for a cash advance.
Invoice factoring allows companies to hire new employees, take on large projects, move to a new space or cover any other business associated expense.
How Does Factoring Work?
Factoring works by following these 5 simple steps.
- Tell us about your business by either giving us a call or filling out an online form. We’ll use that information to match you with the Arizona factoring company that best fits your business.
- The factoring company then puts your business through a short approval process. Once approved, your business can start submitting invoices to the factoring company for completed work.
- The factoring company then contacts your business’ customers and verifies the service has been provided or order has been filled.
- The factoring company advances your business up to 95 percent of the accounts receivable, keeping the rest as reserve.
- The customer pays the factor on their normal payment terms. Once payment has been received, the factoring company releases the reserve to you minus a small factoring fee.