Are you struggling to keep your business afloat? Have you encountered an unexpected business emergency cost that you aren’t financially prepared to pay? There’s no need to stress over your business’s unpaid bills and other operating expenses. You can easily apply for a business loan such as invoice factoring to cover your cash flow needs by using your unpaid invoices as collateral!
Invoice factoring relies on the same practices as two other short-term loan options that we offer known as payroll funding and accounts receivable financing. Only instead of mostly using the proceeds from the business loan to cover the specific costs associated with payroll, you’re free to use it for other unforeseen or emergency business expenses or simply to pay the bills that you couldn’t otherwise afford. Invoice factoring offers business owners the financial security of knowing that, when financial emergencies arise, their business can continue as usual without causing a major strain on the company’s day-to-day operations.
Apply for Invoice Factoring Today by Filling Out a Free Application on Our Website!
The Advantages of Working With Invoice Factoring Companies
There are several reasons why invoice factoring is the number one option for many business owners whenever they find themselves in a financial bind. Some of the most common advantages of invoice factoring offered by YourFundingTree include the following:
Fast, Easy, & Free Online Application Process
The application can be completed on our website in just about 90 seconds!
You Can Choose from Multiple Lenders
Once your application has been submitted to us and reviewed, it’s instantly made available to our network of lenders, who then begin to put together the best possible terms and loan package that they can offer you. Because they realize that you are able to choose from multiple lenders, they are encouraged to offer the most attractive terms possible when creating an invoice factoring loan offer for your business. Since you are able to choose from several different invoice factoring companies, you’ll be able to compare terms and rates to find the one that suits your business the best.
Receive Funds Fast
Once you finalize your loan agreement, you might be able to begin accessing working capital within a few days, making this the ideal option for businesses who are facing emergency expenses or who have an immediate need for funding. Some other types of working capital loans can take up to a month (or more) before the funds are available to the borrower. With invoice factoring, you get the cash you need when you need it, not weeks or months later, or even worse, when it’s too late. When you work with a top-tier invoice factoring company to get the funding your business needs, they’ll work fast to provide you with competitive terms, and quick financing. In fact, if you provide them with invoices that are from creditworthy customers, the entire loan application and approval process can be completed in less than one week, from start to finish. As soon as your business loan application has been approved, you could potentially receive funding in a matter of just a few days.
The Only Type of Collateral Needed is Your Company’s Unpaid Invoices
When you apply for other types of financing for your business, you might be required to provide the potential lender with several forms of collateral to secure the loan. Or, you may need to have enough collateral that needs to equal a certain amount before you can receive approval for funding. Another common requirement when applying for a business loan is showing the worth of your business, including records such as bank statements, a real estate mortgage or lease agreement, monthly expenses, a budget, and on and on. With invoice factoring, your company needs to only have one (very common) type of collateral which are unpaid invoices that can be used for financing. For invoice factoring, lenders don’t tend to focus on many of the usual considerations for loans, such as your personal or your company’s credit scores, bankruptcies, and income to debt ratios. Even if your financial history is less than perfect, you can still apply and feel confident that your application is likely to result in obtaining approval for funding. Because you are basically “selling” your unpaid invoices to the lender, they are able to feel secure about their ability to collect payment for your loan.
Use This Type of Financing Anytime You Need to Access to Capital Quickly
Once you gain approval for invoice factoring, you can turn to the lender over and over again for future invoice funding. You never have to worry again that an emergency expense or a lack of business capital will result in a major disaster for your company.
Invoice Factoring Advantages
Invoice factoring is the perfect solution for small business owners as well as large business owners who need to be able to access funds fast when they need them. Loan minimums and maximums are typically relaxed, so you can get loans in varying dollar amounts. Whether your business needs less than ten thousand dollars or requires several million dollars, you can count on invoice factoring. So, the next time your business is hit with a major operating expense that causes the company’s finances to take a turn for the worst, relax. With invoice factoring or with any of the other types of business loans we offer, Your FundingTree easily has you covered.
Contact Us at 704-904-0774 to Learn How We Can Help Your Business Grow with Invoice Factoring!
How Does Invoice Factoring Work?
Invoice factoring is a simple and effective funding option that helps businesses provide the necessary funds to cover emergency expenses, working capital, operating expenses, on-going bills, and other types of business expenses that they normally would have lacked the necessary funds to pay. It’s an easy and proven financing method for companies to turn to when they are financially strained or are experiencing exponential growth. Many business owners use invoice factoring to regularly fund unexpected expenses for their company.
It’s the type of funding that can be tapped into again and again if needed. The initial application process with Your FundingTree is quick and can be completed online in just a couple of minutes (or less!). This makes invoice factoring an even more accessible and attractive option for business owners who, along with a shortage of funds, also lack the time it would take for them to search for lenders, fill out multiple applications, and apply for financing. Another reason that businesses prefer invoice factoring is that many times, the funds can be available within a week after they submit an application to us. This is why this type of loan is such a popular choice among businesses who may be facing an unexpected or emergency expense and need to be able to gain fast access to funds.
Luckily, most businesses use invoicing as a way to bill customers for goods or services that have been provided by them. A trucking company is the perfect example of the type of business that utilizes invoice factoring as a way to finance its day-to-day operating expenses and helps to maintain a steady cash flow. If your company is among the many who rely on invoicing as a means for billing your customers, then you’re likely to be eligible for an invoice factoring loan.
Funding With Factoring Companies
When you apply for an invoice factoring loan, you agree to sell your invoices to a factoring company in exchange for up-front cash that can be used to cover your immediate expenses. You get to decide if you will sell one or all of your unpaid invoices (although you’re likely to choose a number that falls somewhere in between the two). Then, the next time you run into a situation that requires you to seek outside funding, you’ll have the option to sell invoices to the same lender just like you did the first go-around. In fact, you can repeat this process over and over again whenever you’re short on funds. Since you have already completed the application process when you first applied for a loan, whenever you revisit the process in the future with the same lender, it’s even easier and faster to get the quick working capital you need.
What a relief to know that you already have a funding source in place whenever your business is in need of some extra cash to make it through the month. If your business is experiencing cash flow problems due to growth or because customers are taking too long to pay their invoices, then invoice factoring is the perfect solution.
In Addition to Providing Businesses with Invoice Factoring and Other Types of Business Loans, Your FundingTree Offers Business Services Which Help Business Owners Manage and Protect Their Business and Their Employees. Call 704-904-0774 Today to Discover How We Are Able to Help You Manage and Grow Your Business!
Invoice Factoring vs Invoice Financing
Sometimes, the term invoice factoring is used interchangeably with invoice financing. But, although these two funding options are similar, they are not the same thing! Invoice factoring involves selling your business’s invoices to a factoring company, which then works directly with your customers to collect their payments. Invoice financing, on the other hand, is structured as a secured line of credit which relies on invoices as collateral. They provide funding to the borrower as well, although these lenders usually provide around 85% – 100% of the invoices’ value, whereas an invoice factoring company tends to provide around 80% – 95% of the invoices’ value. Another significant difference between the two funding options is that invoice financing allows borrowers to collect the funds directly from their customers and then pay the lender back for the amount they have borrowed.
Invoice factoring companies will work with the customers to collect payments directly and will then subtract what they are owed, since it’s already been advanced to the borrower, along with a small financing fee. They will then forward any remaining balance they’ve collected back over to the borrower. When you apply for funding, it’s important that you understand which type of financing your loan agreement includes and the type of finance company you’re working with. Factoring companies are slightly different than traditional lenders. At Your FundingTree, our network of finance companies includes both invoice financing companies and invoice factoring companies. If you prefer to work instead with an invoice financing company, we can help connect you to the best lenders that will work with you to create the business loan agreement that’s right for you.
Typical Terms & Rates
The terms and rates of an invoice factoring loan tend to depend largely on each business’s unique financial needs and circumstances, as well as the lender’s individual policies and procedures. Many lenders are able to offer favorable terms that include advancing between 80% and 95% of your invoiced amount, and at a cost of only around 1.0% to 2.5% per month for funding. Some lending companies will offer discounts based on volume and the total amount of the invoices provided by your business for the term of the loan agreement. The best way to know the specific terms and rates that will be offered by a lender is to apply for invoice factoring with Your FundingTree and then compare the different lenders so that your business is able to get the best financing loan agreement possible.
What are you waiting for? Don’t let a shortage of working capital cause you any unnecessary stress. Get the funds you need, fast, with invoice factoring. It’s the ideal solution for all of your business’s financial needs! Working with Your FundingTree is quick, easy, and free. We will help you secure the funding your business needs, and you will be introduced to the best factoring companies serving your business’s industry.