If you’re a business owner, you know it can be difficult to grow your business with the capital you currently have. You have to pay the bills, keep up your workspace and pay your employees – how can you afford to upgrade equipment, take on a new large project or redo your company’s exterior?
You use invoice factoring.
Accounts receivable factoring, also known as invoice factoring, is the process of selling your business’ active invoices to a factoring company for a cash advance.
How Does my Business Start Factoring?
All you have to do to start factoring is either give us a call or fill out an online form. We are basically factoring matchmakers—we’ll figure out your business’ wants and needs, then pair you with a factoring company in Tennessee that meets them.
Once you get matched with a factoring company, they’ll put your business through a quick approval process. After your company is approved, you’ll be able to submit invoices for completed work to the factoring company.
The factoring company then contacts your customers and verifies that the order was filled or service was completed. After being verified, the factoring company will advance up to 95 percent of the account receivables, keeping the rest as reserve.
Your customer then pays the factor on their normal payment terms. Once paid, the factoring company releases the rest of the reserve to you, minus a small factoring fee.