Factoring is the selling of invoices (account receivables) to a financial company known as a factor.

The factor will usually advance 60% - 80% of the face value of the invoice. When the invoice is paid by the customer, the remaining amount is forwarded, minus a discount fee. Once you have an account with a factor, most companies can factor an invoice in 24 to 72 hours.   

   The flexibility offered by factoring invoices can make the difference in your company making it. The business world is full of successful businesses that manage their cash flow using factoring. There's basically three main types of financing: Debt

                                                         Equity

                                                         Factoring                                                             

  Example: You have finally completed the long and stressful process of becoming a government vendor. You hire a few new employees to handle the increased workload. You get your first few contracts…Suddenly you have a few more contracts on the horizon.  But, you haven’t been paid for the completed projects yet or you’re offered a large, long-term contract. Cash flow hasn’t kept pace with growth. There are more employees to pay and supplies must be purchased in advance. Banks won’t loan you more money.

   Invoice factoring is a proven, flexible and debt-free, method of effectively multiplying your working capital and is available to any sized business, even your business.