INVOICE FACTORING FAQ'S

1. What is Invoice Factoring- (IF)?
   
           Invoice Factoring is a financial tool that businesses can use to improve their cash flow almost instantly. It's another type of accounts receivable financing.
    
2. What is used as collateral?
   
           The invoices that you send to your clients for services and/or goods are used as collateral.
    
3. What are the benefits of Invoice Factoring?
   
           Invoice Factoring allows you to get paid on your account receivables invoices today, rather than you having to wait 30-60 days or more.
    
4. Is it a difficult process?
   
           No, it is a quick and easy process.
    
5. How long does it take for the client to receive funds after they apply?
   
           It only takes 3-5 days once all the documents are in.
    
6. What is the percentage of applications that are approved?
   
           The percentage of applications approved are 80-90%.
   
    

INVOICE FACTORING - MORE INFO

Please give me a brief description of your Invoice Factoring product. What is Factoring?
Invoice factoring is also known as accounts receivable financing, another form of debt financing and asset-based lending.

Accounts receivable financing or invoice factoring is not difficult to understand or utilize. As a matter of fact, it has been in existence since the beginning of trade and commerce.

Accounts receivable factoring in the United States has historically been one of the most sought-after methods of financing that immediately improves the cash flow of a business. When a company decides to discount its accounts receivables to a financial institution, it is termed as factoring, not borrowing. A key benefit of factoring services is that an invoice factoring and invoice discounting company researches the credit of your customer and advises on the risks. Should you both agree to invoice factoring, then the factor becomes the recipient of payment. It is among one of the most effective and efficient forms of financing used these days and does not create debt.

Accounts receivable financing, accounts receivable factoring, debt factoring, receivable financing or business lines of credit are all financial tools used to provide working capital to aid in the growth of businesses. The accounts receivable invoices sent out to your customers for goods or services rendered are used as collateral. Depending on the nature of your industry, credit terms extended, and how creditworthy the accounts receivable customer is, a business can usually obtain between 80% to 90% of their total value up front from a factoring company, with the remaining difference to be returned after payment is received - less the invoice factoring fee.

This means that your business can get paid on its accounts receivables today instead of waiting 30 to 60+ days! Invoice factoring allows your business to get instant cash fast. The process is simple. You sell your accounts receivables to us, and we pay you so that you do not have to wait for your customer to pay you. You get the cash you need immediately.

With Capital Partners' Invoice Factoring Program, we do not require that you factor all of your customers. You choose which customers need invoice factoring and send them to us; you keep the others just as they are. By factoring your invoices, your business can have immediate access to cash and working capital to promote rapid growth and fund new business ventures without incurring any debt. Invoice factoring can also help your business gain good credit and improve your credit score, as well as take advantage of supplier discounts. Simply put, it is a financing tool that provides working capital for your business, paying you in as little as 24 hours.