Invoice Factoring
Waiting 30, 60 or 90 days on unpaid invoices can put pressure on cash flow. Cash 4 Kings helps businesses nationwide explore potential invoice factoring solutions to access capital tied up in outstanding invoices.
What Is It?
What Is Invoice Factoring?
Invoice factoring is a funding arrangement in which a business sells its outstanding invoices to a factoring company in exchange for a percentage of the invoice value upfront. Rather than waiting for customers to pay on their normal terms, a qualifying business may access a portion of that value sooner, subject to the factoring company's terms and fees.
Who Uses It
Businesses That May Benefit From Invoice Factoring
B2B Companies With Long Payment Terms
Businesses invoicing commercial customers on 30, 60 or 90-day terms.
Growing Businesses
Companies that need capital tied up in receivables to fund continued growth.
Staffing & Service Businesses
Businesses with payroll and operating costs due well before customer invoices are paid.
Trucking & Transportation
Carriers waiting on freight invoices while fuel, payroll and maintenance costs continue.
Qualification Factors
What Do Factoring Companies Consider?
The creditworthiness of your customers, the value and age of your outstanding invoices, your industry, and your overall business profile. Because factoring is often based more on customer credit than your own, it can be an option for newer or growing businesses.
FAQ
Invoice Factoring FAQs
What is invoice factoring?
Invoice factoring is a funding arrangement where a business sells its outstanding invoices to a factoring company in exchange for a percentage of the invoice value upfront.
How is invoice factoring different from a loan?
Invoice factoring is generally based on the value of your outstanding invoices and customer creditworthiness rather than functioning as a traditional loan against your business's overall credit profile.
Who collects payment from my customers?
Depending on the arrangement, the factoring company may collect payment directly from your customers, or other structures may apply. Terms vary by provider.
Can a newer business use invoice factoring?
Invoice factoring can be an option for newer businesses since it is often based more on customer creditworthiness than the business's own credit history, though requirements vary by provider.
Does Cash 4 Kings guarantee approval?
No. Cash 4 Kings does not guarantee approval or funding. Terms are determined by the applicable funding provider.