Flexible Invoice Financing Solutions
Get paid on your outstanding invoices the same day, while still giving your clients the flexibility of net terms. Let Strategic Capital help alleviate and solve cash-flow constraints forever.
Accounts receivable financing, commonly referred to as “invoice factoring” is an arrangement where businesses can exchange future client payments for immediate cash. The company sells unpaid invoices to a third-party financial institution – an invoice factoring company. The third-party purchases the invoice(s) at a discounted rate and the business receives the funds up-front. Instead of waiting for a customer or client to pay the invoice, they get the cash much sooner, usually within 1-2 days. This provides them with an injection of capital which can be used to pay for operational costs and overhead like rent, utilities, and payroll expenses.
Do you qualify?
Months in Business
Personal Credit Score
Approvals up to $5 Million
120+ day invoice terms
Cost of Funds:
Weekly rates starting at 0.25%
4-7 business days
Small business invoice factoring for cash flow needs
How invoice factoring works
How does invoice financing compare with invoice factoring?
However, invoice factoring works a little differently. It’s not a loan and the invoices are not used as collateral. Instead, the third-party company buys the invoices belonging to another business for a discounted value. The business gets a slightly smaller amount than they would have if they’d waited for the loan to be paid by the customer, but they get the benefit of receiving cash up-front to address more immediate requirements.
While these are actually different solutions, it is common for both to require monthly minimums. We are renowned as a leading invoice factoring company thanks to low minimum processing amounts and our commitment to supporting the growth of client companies.
How does invoice factoring compare with other forms of business financing?
Invoice factoring has a little more in common with merchant cash advances since they both relate to customer payments. However, merchant cash advances are also a type of borrowing which relies on customer card transactions to be paid off. Whereas invoice factoring does not involve borrowing, it’s just a simple exchange of outstanding invoice for cash. Unlike other business financing options, invoice factoring is tied to your sales rather than your profit and loss statement. The more sales you can generate, the greater amount of working capital you can access using this method. Invoice factoring can offer a continuous source of business funding to meet your operational needs.
Benefits of factoring companies
Factoring Companies like Strategic Capital offer invoice and accounts receivable factoring services that can supply you with up to 90% of your invoice value in less than 24 hours. The main factoring benefits include:
- You get paid immediately – as soon as you invoice your work – not in 30, 60 or 90 days.
- You can work with a lender whose business it is to know your business well, helping you grow.
- You will get more capital from a great factoring company like us than you ever would from a bank.
- Someone else does the collecting for you, saving you the time and resources chasing down client payments.
- A professional team evaluates the credit risk of your customers, keeping you from extending net terms on dead weight clients.
Variables that affect invoice factoring rates
Deciding on a factoring company
We offer an arrangement that offers you the funds, flexibility, transparency and terms that work for you. As a guiding principle, look for a partner you’ll want to work with long-term with people that you like and don’t settle for anything less. Ready to work with an invoice factoring company you can trust now?
6 Months in Business
530 Personal Credit Score
$40,000 Monthly Revenue
What you need to apply
AR Aging Report
Copy of Outstanding Invoices