After a company delivers the product or service to their customer, they issue an invoice. The company then “sells” the invoice to the factor (us), and in return receives an advance, typically between 70-90% of the value of the invoice. With the capital on hand, the company can take on more work, pay employees or buy more materials, supplies and inventory. Once the debtor pays the outstanding invoice, the business receives a discount or “rebate” for the remainder of the funds, minus a fee that is based on the term and value of the invoice. In the end, both parties benefit as the customer gets cash upfront and their customer gets favorable payment terms.