Your business needs to hire more people, take on a big project or make a big purchase, but doesn’t have the funds. What do you do? You start factoring your accounts receivables.
What is accounts receivable factoring?
Invoice factoring, also commonly known as accounts receivable factoring, is the process of selling active invoices to a factoring company for a cash advance.
How do I factor?
Give us a call or fill out a form! That’s all your company has to do to start.
From there, we pair your business with a factoring company in Illinois that best fits your specific needs. They’ll put your company through a quick application and approval process.
Once you’re approved, you submit your invoices for completed work to the factoring company. They will then contact your customers and verify that the services have been completed or orders have been filled.
The factoring company then advances your business up to 95 percent of the accounts receivable, keeping the rest as reserve. Your customer will do as they always have, paying your factor on their normal payment terms.
Once the customer pays, the factoring company releases the reserve amount to your business minus a small factoring fee.