INVOICE FACTORING

While receiving payment up front is an ideal scenario for small businesses, it is not always feasible. In such cases, invoice factoring can provide access to working capital in a timely manner, typically within 24 hours. This allows businesses to bridge the gap between issuing an invoice and receiving payment, ensuring that their cash flow remains stable.
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INVOICE FACTORING

While receiving payment up front is an ideal scenario for small businesses, it is not always feasible. In such cases, invoice factoring can provide access to working capital in a timely manner, typically within 24 hours. This allows businesses to bridge the gap between issuing an invoice and receiving payment, ensuring that their cash flow remains stable.
Apply Now

What is Invoice Factoring?

Invoice factoring is a type of funding known as “accounts receivable financing” that provides businesses with access to working capital by exchanging their unpaid invoices for cash. This funding option allows businesses to receive the net amount, which typically ranges between 70-90% of the invoice’s value up to $100,000 per common ownership, within one business day. Finhub can facilitate online invoice factoring for either a group of invoices or individual ones.

With Finhub’s online invoice factoring, we handle the responsibility of collecting the payment from your client. Once the payment is received, we will provide you with the remaining amount of the invoice (minus our fee) with payment terms ranging from 30 to 90 days. As we understand the importance of maintaining good customer relationships, we ensure that the collection process is conducted professionally.

How to Get Invoice Factoring?

Apply

Start by gathering three months of bank statements and any other relevant records. To expedite the approval process, you may provide secure access to your bank account's transactional data.

Choose Funding

A Funding Advisor will contact you within an hour (during regular business hours) to discuss your funding options and complete the application process.

Get Funded

After determining the best funding option for your business, you can receive approval and have the funds deposited into your account in as little as 24 hours.

Set Repayment

Repayment will be set up automatically, with payments based on your business's daily or weekly debit and credit card sales.

How to Use Invoice Factoring

Invoice factoring has no limitations on usage, and it is generally most beneficial when applied towards the following objectives:
  • Addressing cash flow deficits without incurring long-term loan commitments.
  • Covering recurring expenses such as payroll, rent, utilities, and others while waiting for clients to remit full invoice payments.
  • Financing growth initiatives, acquiring new equipment, and other high-return investments.
  • Capitalizing on seasonal business prospects, such as purchasing inventory in large quantities.

Who Should Apply Online for Invoice Factoring?

Invoice Factoring is suitable for:
  • Businesses with extended payment periods for their accounts receivable.
  • Businesses with a high volume of unpaid invoices.
  • Bridging the time between issuing business invoices and collecting payments.
  • Unpaid business invoices with credit terms exceeding $15,000 that are no more than 90 days overdue.
  • Businesses that require expedited business funding.
  • B2B enterprises that require smaller business funding amounts.
  • Businesses with lower business credit ratings or without business collateral, such as real estate and other significant business assets.
Invoice factoring is a versatile funding solution that can aid various industries such as construction, pharmaceuticals, legal services, manufacturing, and business services, among others. Regardless of the industry you operate in, our knowledgeable Funding Advisors will collaborate with you to determine the most suitable funding option for your business, allowing you to achieve your objectives without impacting your cash flow.

Requirements for Invoice Factoring

Online invoice factoring has more lenient eligibility requirements than other funding alternatives, as your invoices function as collateral.
Finhub places emphasis on the overall well-being of your business, in addition to the payment track record of your clients, rather than just your credit rating. Here are some of the criteria we evaluate:
  • Business revenue : We take a close look at your business revenue to ensure that you have the cash flow to make timely repayments.
  • Cash flow : We analyze your cash flow to determine if you have sufficient funds to meet your financial obligations.
  • Vendor payment history : We assess your vendor payment history to ensure that you have a good track record of paying your bills on time.
  • Years in business : We consider the number of years your business has been in operation, as this can indicate stability and success.
  • Public records : We review your public records to identify any outstanding liens, judgments, or bankruptcies.

Invoice Factoring Q&A

Our approval process includes a review of the customer you invoiced to ensure their ability to pay. Once approved, we purchase all of your business’s outstanding invoices for that customer, until either party terminates the relationship.
While most lenders require first position on invoice factoring, we do not.
Once approved, we provide your customer with payment instructions and test the process to ensure proper payment. We take a professional approach to invoice collection, respecting the importance of customer relationships.
Invoice factoring is not technically a loan, but a form of asset purchase referred to as “accounts receivable financing.” There are various types of invoice factoring, such as invoice financing and invoice discounting, each with their own unique features. You can learn more about the online invoice factoring process from our experts.
Unlike loans, invoice factoring does not require interest payments. We charge fees based on the difference between the invoice’s value and our purchase price, which our Funding Advisors will explain to you transparently.
At FinHub, our primary goal is to support the success of your small or medium-sized business by offering hassle-free funding options that are fast and efficient.

Contact Info

questions@finhubconcepts.com

(646) 490-3403

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