Invoice Factoring
Invoice factoring allows you to convert your unpaid customer invoices to immediate cash advances. This improves cash flow while the third party collects the payments.
What is Invoice Factoring?
Invoice factoring, also known as accounts receivable factoring, is a form of small business financing where a business sells its invoices to a factoring company in exchange for upfront funding. When the invoice amount is paid by the customer, the remaining balance is paid to the business owner minus a fee.
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Invoice factoring allows you to receive the working capital you need to maintain operations and plan for the future, but without taking on the periodic fixed payments associated with a term loan. If slow-paying clients are stalling your ability to pay bills or meet payroll, invest in technology and equipment or hire more staffing, invoice factoring can help you bolster cash flow by liquidating your outstanding accounts receivable to meet your business needs.
Fast Financing For Your Business
After submitting your invoices to the lender for invoice financing, you’ll receive the amount of the invoice minus a percentage as payment. Once the client pays you, you satisfy the agreement with the lender. While it may be helpful to have the lender collect unpaid invoices on your behalf, understand that you will have less control over the collections process and that your clients may become aware of your cash flow shortages.
Loan Amount From $5,000 - $500,000
Rates From 1%-5%
No Collateral Requirements
No Application Fees
Invoice Factoring Loan Details
Qualifying Criteria:
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550+ credit score
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6+ months in business
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$10,000+ average monthly bank deposits
Required Items:
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Signed one page funding application
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3-5 most recent business bank statements
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Invoices you wish to redeem
Advantages:
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Invoice factoring provides a safe, immediate source of cash flow by releasing working capital that is tied up in unpaid invoices.
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Having a lender collect invoices for you can help you save time spent on administration and chasing late payments.
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Factoring provides flexibility as amounts can expand and contract with your sales volume.
Disadvantages:
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Invoice factoring companies will verify your invoices with clients to ensure that they are accurate. Including a third party can affect customer relationships and also means that you will have to give up some control.
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If your client has a weak payment history or credit score, it may affect your approval.
Why Choose Us?
At Gold Management Inc., we prioritize your business in a way that traditional banks and other alternative lenders often don't. Your success is our top priority, which is why we ensure you won't be over-leveraged with more funding than you can manage. Our straightforward application and fast approval process make obtaining the working capital your business needs easy. Additionally, our experienced funding consultants will support you at every step.