Invoice Factoring
Traditional Invoice financing is designed for the business who wants to improve cash flow and save time and money on billing, collections, credit management and cash application of payments. This is an ideal solution for small business financing or for a growing company that has cash needs and does not have the resources to spend on accounts receivable management. Transfac will purchase invoices, advance cash within 24 hours, send the invoices to customers (if needed), and manage the collection of the money.
So, what is Invoice Financing?
For over 4,000 years, people have used some form of factoring. Invoice factoring as we know it today is a type of business financing that allows businesses to circumvent traditional means of funding. Methods such as bank loans and private investments are less preferred because of their restrictive stipulations and their long approval times. To receive funding through this type financing, all you need are invoices that can be factored. Basically, you, the company, are selling your debt owed to you for money now.
How does it work?
Your company does work and then bills customers for that work. If you send those invoices to Transfac, we will advance you a large percentage (many industries up to 90%) of the value owed to you in less than a day. Then, when your customer pays the bill several days or weeks later, Transfac forwards you the difference between the payment and the original amount advanced, minus a small fee for administration and funding.
Top Reasons to Consider This Type of Funding For Your Business
- No new debt, no loans
- Receive payment in less than 24 hours
- Eliminate collections
- Professional AR management including Credit Management
- Improve cash flow and credit
