Invoice discounting is a financing tool that provides a cash flow boost. It helps companies that get into cash flow issues waiting for customers to pay invoices. Offering payment terms is the norm when operating in a business to business environment especially when your are working with larger corporations. Invoice factoring allows a small business to offer 30 to 90 day payment terms without suffering from cash flow issues.
Most companies that use invoice discounting services do so while growing sales over time. Discounting your invoices allows your company to pay for expenses, add staff, and add larger more profitable business customers to your client list. When you start getting immediate cash every time invoices are generated you are put in a position to expand and grow.
Invoice discounting allows you to stop being your customers bank and outsource the financing of your customers. Most invoice discounting credit lines work very similar to a revolving funding product. The factoring company or invoice discounter advances a percentage of your accounts receivables which is normally in the 80% to 90% range. When new invoices are generated your discounting them normally 1% to 3% with your factoring company to have access to immediate cash for your business. Once your customers pay the discounted invoice you will receive back amount that was not advanced less the discount fee.
Now you are in position to think cash first and surge past your competition. Expand and grow using invoice discounting services as your financing tool.
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Invoice discounting is easier to get than regular commercial bank financing. Most companies can qualify for invoice factoring services and generally get approved if they have these criteria points below.
- – Customers that are business only with reasonable credit risk
- – Offer terms of 30 to 60 days for payment
- – You could benefit by having quicker cash flow
- – Do not have your accounts receivable pledged to another lender
- – Do not have serious legal problems
We offer one of the fastest invoice discounting services available in the United States and Canada and we welcome the opportunity to provide you a quote. We can have all of our quotes for ready for review within one day or less.