If you’re a business owner in Massachusetts looking to grow or expand your company, look no further than invoice factoring.
Accounts receivable factoring, also known as invoice factoring, is the process of selling your business’ unpaid invoices to a factoring company for a cash advance.
How Does Invoice Factoring Work?
The simplest way to understand how invoice factoring works is by explaining the process in steps.
Step 1: You decide you want to grow your business using capital received from invoice factoring. You pick up the phone and give us a call or fill out an online form.
Step 2: You tell us about your business. We use that information to match your business with the Massachusetts factoring company that best fits your wants and needs.
Step 3: The factoring company we matched you with puts your business through a quick approval process. Once approved, your business starts submitting invoices for work completed or services performed.
Step 4: The factoring company contacts your business’ customer and verified the work was done or service was completed. The factoring company then advances your business up to 95 percent of the accounts receivable, keeping the rest as reserve.
Step 5: Your customer pays the factoring company on their normal payment terms. Once the factoring company is paid, they release the reserve to you minus a small factoring fee.