Invoice Funding Capital for Your Business
Invoice funding capital for your business.
It's one of the best alternative funding options.
With this option, you don't have to go on your hands and knees to a bank, begging for that loan.
The amount of years your business has been around is of no consequence and credit score doesn't matter.
In order to raise funds, funding is based on credit history of the customer's company.
When companies with decent to great credit have customers that are on the book for owing them money, these companies can use these monies owed or invoices as leverage for a loan.
This is a great alternative funding option because this uses work that's already been completed and capital owed and is used to get money now.
This beats having to wait weeks and sometimes months to get the money that is coming to them.
Through this way, they can get money in a couple of days.
Invoice funding is a smart, easy and creative funding option for a business.
A large number of business that bill or invoice their customers will usually qualify for this type of funding.
All that is needed is a Factor they can work with.
The Factor companies are mainly looking for companies that have good quality invoices.
How it works is that they buy these invoices at lower rates, collect on the invoices and return the money collected, subtracting the fees and other money that was used on the original purchase of the invoices from the business they purchased them from.
On the average, invoices are usually bought at a 65% to 95% discount of their total value.
At the start, companies may take a ding financially however their are many benefits.
Companies can get their funds in days instead of waiting 30, 60 or 90 days.
In many instances, companies are not in the position to wait up to 90 days to get the money owed to them.
Because of circumstances, they need the money now.
They may lack the money now to pay for inventory, salaries, unexpected emergencies, hire new employees, advertising and other expenses.
Companies that are in this position are often times more than willing to comply with the discounted rate on their invoices in order to receive their funds right away.
Moreover, companies will receive the remaining portion of their invoices down the road so it's really not a huge deal Again, the invoices are purchased at a discounted rate, however, the remaining cash will be returned to them after the Factor has collected the remaining invoices.
All the money the Factor has collected will e returned to the company minus fees and other expenses used to purchase the invoices at the beginning of the process.
The 65% to 95% paid for the invoices will also be withheld.
Purchase order financing is another option that is available.
This option is a lot like invoice funding.
Purchase order financing (PO funding) constitutes the purchasing of materials that company is going to need in order to fill an order that they are contracted for.
At the conclusion, when the company has gotten the materials, made and sold the product, the company then gives a share of their profits with the Factor company.
These two options are very helpful in helping companies that are cash poor at the moment stay in business, making sure their financial obligations are met.
It's one of the best alternative funding options.
With this option, you don't have to go on your hands and knees to a bank, begging for that loan.
The amount of years your business has been around is of no consequence and credit score doesn't matter.
In order to raise funds, funding is based on credit history of the customer's company.
When companies with decent to great credit have customers that are on the book for owing them money, these companies can use these monies owed or invoices as leverage for a loan.
This is a great alternative funding option because this uses work that's already been completed and capital owed and is used to get money now.
This beats having to wait weeks and sometimes months to get the money that is coming to them.
Through this way, they can get money in a couple of days.
Invoice funding is a smart, easy and creative funding option for a business.
A large number of business that bill or invoice their customers will usually qualify for this type of funding.
All that is needed is a Factor they can work with.
The Factor companies are mainly looking for companies that have good quality invoices.
How it works is that they buy these invoices at lower rates, collect on the invoices and return the money collected, subtracting the fees and other money that was used on the original purchase of the invoices from the business they purchased them from.
On the average, invoices are usually bought at a 65% to 95% discount of their total value.
At the start, companies may take a ding financially however their are many benefits.
Companies can get their funds in days instead of waiting 30, 60 or 90 days.
In many instances, companies are not in the position to wait up to 90 days to get the money owed to them.
Because of circumstances, they need the money now.
They may lack the money now to pay for inventory, salaries, unexpected emergencies, hire new employees, advertising and other expenses.
Companies that are in this position are often times more than willing to comply with the discounted rate on their invoices in order to receive their funds right away.
Moreover, companies will receive the remaining portion of their invoices down the road so it's really not a huge deal Again, the invoices are purchased at a discounted rate, however, the remaining cash will be returned to them after the Factor has collected the remaining invoices.
All the money the Factor has collected will e returned to the company minus fees and other expenses used to purchase the invoices at the beginning of the process.
The 65% to 95% paid for the invoices will also be withheld.
Purchase order financing is another option that is available.
This option is a lot like invoice funding.
Purchase order financing (PO funding) constitutes the purchasing of materials that company is going to need in order to fill an order that they are contracted for.
At the conclusion, when the company has gotten the materials, made and sold the product, the company then gives a share of their profits with the Factor company.
These two options are very helpful in helping companies that are cash poor at the moment stay in business, making sure their financial obligations are met.
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