Invoice Factoring

While it's ideal to pay upfront, this isn't always feasible. With invoice factoring, small businesses can quickly obtain working capital, allowing them to bridge the gap between issuing invoices and receiving payment. This can happen in as little as 24 hours.

What is Invoice Factoring?

With invoice factoring, your company can obtain working capital in exchange for your outstanding bills in as short as one business day. This non-loan type of funding is known as "accounts receivable financing." Your lender, which is us, will buy the outstanding bills from your company at a reduced rate and give you a cash advance for the net amount, which is usually between 70 and 90 percent of the invoice value up to $100,000 per common ownership. We can set up bulk online invoice factoring for individual or small invoice bundles, or for your complete sales ledger.

We are in charge of invoice collection when using Biz Loans online invoice factoring service. We'll send you the balance of the invoice (less our charge) as soon as your client pays; periods are normally between 30 and 90 days. You can rely on us to collect on your invoice in a professional manner since we understand how essential your customer relationships are.

Invoice Factoring Rates

Instead of using a standard interest rate, merchant cash advances use factor rates. Factor rates are straightforward decimal numbers that indicate how much "extra" you will have to pay over the loan's original amount. Based on a risk analysis, your factor rate is assessed. Factor rates typically range from 1.1 to 1.5.

Who Should Apply Online for Invoice Factoring?

Factoring invoices is best used for:

Companies with protracted periods of unpaid invoices

Companies having a high volume of unpaid invoices

Closing the gaps between invoice submission and payment receipt

Invoices that are at least $15,000 in value, have extended credit terms, and are not past due by more than 90 days

Companies looking for quick funding

B2C companies with less capital requirements

Companies without collateral, like real estate or other significant assets, or with lower credit scores

Construction firms, pharmacies, legal offices, manufacturers, business services, and more can all profit from invoice factoring. Regardless of the sector you work in, our knowledgeable finance Advisors will collaborate closely with you to determine the optimum finance solution that will enable you to meet your objectives without compromising cash flow.

How to Get Invoice Factoring

1 Apply

Collect three months' worth of bank statements and other documentation. Give us secure access to the transactional data from your bank account so we can approve it more quickly.

2 Choose Funding

Within an hour (during regular business hours), a financing advisor will get in touch with you to finish your application and go over your funding alternatives.

3 Get Funded

Your money can be authorized and deposited within 24 hours after you and your funding advisor decide which funding option is best for your company.

4 Set Repayment

Your company's debit and credit card sales on a daily or weekly basis will be automatically subtracted to cover payment. The amount of your payment will depend on your sales.

How to Use Invoice Factoring

The funding obtained through invoice factoring is not subject to any limitations. The best uses for funds obtained through online invoice factoring are usually as follows:

Close cash flow gaps without taking out a long-term loan.

Payroll, rent, utilities, and other regular costs should be covered while you wait for

customers to settle their bills in full.

Finance expansion plans, new machinery, and other expensive yet very profitable investments.

Profit from seasonal business possibilities by making bulk purchases of merchandise.