Invoice Factoring

Invoice factoring helps improve the cash flow into your business when you experience slow paying invoicing. It frees up cash for you, allowing your business to grow and not be held up by slow paying customers.

HOW FACTORING CAN HELP

By understanding how your invoices are being paid and how long they’re dragging, you can free up cash flow for important items like payroll or paying your vendors. This can help improve your company’s cash flow. When looking at the flow of your invoices, you can then take on better clients for growth by offering Net 15 and 30-day pay terms. This allows you to attract better clients and then forecast your invoices, equaling more cash for growth.

Factoring is better than a loan because the application process is based on your revenue and the number of monthly invoices that are coming into your company. We can then assess your invoices against your incoming cash and design a plan to fit your needs each month. The application process is very easy, and typically, we can have you approved and get cash into your company in just a couple of days. As you grow, so does your cash flow. We want to grow with you, so as your business grows, we can supply more funds to help you improve your business. Our goal is to keep building our relationship with you so we have a solid partnership for the future.

Factoring is perfect for a growing business because it allows a small business owner to have no worries. By always having cash on hand, you will be able to pay invoices and take care of payroll. As your partner, we will analyze the quality of your customers and how they’re paying you for your services. This will allow your company to focus on your high-quality partners so you can concentrate on building your company.

IS THIS THE RIGHT OPTION FOR YOUR COMPANY?

As a finance company, we have many funding solutions to help your business by offering the right advice from the beginning. If factoring is not a cost-effective way to help you, we will recommend another plan.

Factoring only solves one problem: slow paying customers. It does not solve the problem if you need money for inventory or capital equipment. Factoring is looking at your invoices, who is paying on time and who is not. This requires someone being the weekly gatekeeper to solve these issues.

As the third party involved with helping your business’s cash flow, we may reach out to customers from time to time to make sure the service is indeed working. In factoring, an assignment of us doing business with you is sent to your customers to make them aware that we’re helping factor the receivables.

In the end, the whole process of factoring can be very easy. At Accel Capital our job is to help you grow without worries or stress. Typically, you can expect 70% to 95% of the gross value of your invoices, depending on the industry type of your business. Once the assignment is in place and a UCC (Uniform Commercial Code) is filed with the state, you can expect the process to start in three to five days.

Our funding specialists are expert in these areas and can help you find the right solution. Accel Capital listens, understands, and then finds the right solutions for your company’s growth.

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PROS

  •    Frees up cashflow for other business expenses
  •    Minimal paperwork
  •    Quick turnaround time
  •    Allows for opportunity to grow the business

CONS

  •    More expensive if you have slower paying customers
  •     Doesn’t solve any other problem but slow paying customers