Your business needs a California factoring company if it needs more working capital, has clients that take upwards of 30 days to pay or needs to take on a new, large order. Factoring companies can advance your business money using a process called invoice factoring.
Accounts receivable factoring, also known as invoice factoring, is the process of selling active invoices to a factoring company for a cash advance.
Why Should My Business Factor?
- It’s fast. Your business can get funds through a factoring company in California in as fast as 24 hours.
- It’s easy. Fill out a form. After that, factoring is as simple as 1-2-3.
1: Based on the information from your form, we pair your business with the best factoring company for your needs and wants. The business will put you through a quick approval process.
2: Once approved, your business submits invoices for completed work. The factoring company then contacts your customers and verifies the service was completed or the order was filled. After they verify, the factoring company will advance your business up to 95 percent of the accounts receivable, keeping the rest as reserve.
3: Your customer pays the factor on their normal payment terms. When the factor receives payment from the customer, they’ll release you the reserve minus a small factoring fee.