Find the answers to your questions about invoice factoring, factoring companies, and accounts receivable financing in our invoice factoring FAQ page.
Invoice factoring is a cash-flow solution in which a business sells its receivables (invoices) to a factoring company at a discount in exchange for immediate working capital. Businesses use invoice factoring to improve their available cash to use toward payroll, expenses, or growth.
Once you choose a factoring company that meets your business needs, the process of factoring is simple.
TCI Business Capital provides factoring to companies providing business-to-business sales and services. You must bill your customers on net terms and invoice at least $50,000 a month on average.
Once you speak with one of our factoring specialists and discuss your situation and cash needs, you will receive an approval in as little as 15 minutes. Our simple setup process will have you ready for your initial funding in as little as three business days. After your initial funding, we will fund you the same day we receive your invoices.
There are three common factoring rate types; flat, tiered, and prime plus. Factoring rates are calculated based on several variables including monthly invoicing volume, industry, and customer payment trends. See examples of factoring rates here.
We typically advance 90 percent of the invoice amount.
There is no long-term contract. We offer month-to-month financing programs based on your business needs.
With recourse factoring, any unpaid invoice that is uncollectible or in dispute is recoursed or sold back to the factoring client.
With non-recourse factoring, the factoring company takes on the full liability of the invoice. Typically the advance rate is lower, and the factoring fee is much higher with non-recourse factoring.
Unlike a loan, factoring does not create additional debt on your balance sheet.
No! With TCI Business Capital, you can factor some or all of your customers. For the customers you choose to factor, all invoices should be submitted.
Still have questions or want to learn more about invoice factoring with TCI Business Capital? Fill out the form below or give us a call at 800-707-4845.