Invoice factoring, or accounts receivable financing, is a solution that many businesses turn to in order to cover their expenses and invest in growth.
Factoring companies help businesses in all stages grow by advancing them up to 90% of their accounts receivable balance upfront. Once your customer pays, the factoring company rebates the remaining balance to you, minus a small monthly fee ranging from 1% – 3%.
Factoring companies can also handle collections if requested, so you don’t have to worry about collecting payments or checking the credit of new customers. Business overhead is reduced by outsourcing accounting and admin functions to your factoring company partner.
Focus on building your product, not worrying about cash flow.