Whether your company is having trouble keeping up with expenses or you need a cost-effective way to grow your business, factoring your invoices could be the solution for you. A factoring company takes on your outstanding invoices and pays you up front – in as little as 24 hours after delivery of goods or services. You can use the cash for your working capital long in advance of when the invoices are paid. This allows you to get ahead with your accounts receivable and help your business succeed.
Interstate Capital gives you an advance for the money that is owed to you, minus a small factoring fee. Then your client pays the factoring company based on the negotiated payment terms. When you partner with a factoring company, you don’t need collateral like property in order to get the process started. All you need to do is fill out an application form and provide basic details, including what is due to be paid to you and your customer list.
Factoring doesn’t work the same way that a loan from a bank works. When you opt for the traditional route of a bank loan, you incur debt. Rather than evaluating your creditworthiness, a factoring company bases its funding decisions on the creditworthiness of your customers or clients. You can run the day-to-day operations of your business without incurring debt or put your business at a disadvantage while you are waiting for invoices to get paid.
Wondering if factoring will work for you? Get an instant factoring rate quote today.