Invoice factoring is a type of financing in which a business sells its open invoices to a factoring company at a discount in exchange for same-day payment. Invoice factoring provides consistent, reliable cash flow to many industries. Instead of waiting on customer payment, invoice factoring provides same-day cash so that companies can meet their daily operating expenses and the demands of their business.
Companies that use invoice factoring benefit in a number of ways. First, the immediate access to cash enables companies to meet payroll, purchase materials, settle their own payables, and grow. With cash on hand, companies eliminate the stress or worry over payroll, as well as take advantage of savings on their purchases and expenses.
Second, factoring is based on your customer’s credit and payment history. Companies that are not eligible for traditional lending often easily qualify for factoring.
Finally, factoring companies like TCI Business Capital provide value-added services such as invoice support, AR management, online reporting, and more. These services free up time and resources, so company owners can serve their customers and grow their business.
Now that you know how invoice factoring can benefit you, let’s go into the details of what it is and how it works.
*Qualify with $50K in monthly invoicing.*
Invoice factoring is a very simple process. A company provides work, services, or products to their customers. When it’s time to invoice the customer, the company will send the invoice to their factoring company. The factoring company will advance a percentage of the value of the invoice. The invoice is forwarded to the customer, who then pays it in their normal terms. The invoice is paid to the factoring company, and then the remaining balance of the invoice is rebated to the company.
Invoice factoring is not a loan, therefore no interest is charged. The cost of factoring, known as the factoring fee, is based on how long it takes your customer to pay the invoice.
At TCI Business Capital, factoring rates are based on a number of variables. These include, the monthly dollar volume of invoices factored, credit and payment history of your customers, and the expected payment terms.
Because no two companies are the same, TCI Business Capital customizes factoring programs to meet the specific needs of each client. These factoring programs provide clients a low-cost, long-term value in financing, along with superior customer service.
Since 1994, companies from a range of industries have chosen TCI Business Capital for their invoice factoring services. Our industry knowledge and reputation for exceptional factoring services have made us a leader in the factoring industry.
TCI Business Capital offers invoice factoring programs to meet the needs of companies across North America. Our factoring programs feature:
Invoice Factoring is an excellent source of financing for many companies, because of the access to cash. TCI Business Capital serves companies in a wide variety of industries. Invoice factoring provides the cash these companies use to serve their customers and build stronger, more profitable companies.
TCI Business Capital clients work in the following industries:
Trucking & Freight
Utility & Pipeline Companies
Telecom & Wireless Companies
Because each company’s situation is different, TCI Business Capital can create factoring programs tailored to fit the unique needs of each client. We work with clients in many different industries, therefore we can customize a factoring program to meet the specific needs of your company. It’s as simple as 1-2-3.
The first step in opening an invoice factoring line is to speak with a TCI Business Capital representative. We’ll discuss your cash needs situation. From there, we provide a free, no-obligation quote and approval for a factoring line. Because of our simple, straightforward underwriting guidelines, most customers receive a written approval in 15 minutes or less. All factoring approvals are customized for the specific needs of the client. We work to make certain the factoring line meets your requirements.
Once a factoring line is agreed upon, we schedule your first funding. We can accommodate most schedules and furthermore, offer an expedited service for those in need of immediate cash. During the setup process, we review the agreement with you and discuss your invoices as well as any other related materials.
Once the setup process is complete, then you receive the advance via ACH direct deposit or a wire transfer into your bank account. From this point forward, we’ll process and fund you the same day the invoices are received.
Invoice factoring is a good choice of financing for many companies. When a company sells its products or services on terms, the wait for payment can feel like an eternity. Many companies waiting for customer payments are not able to take advantage of new business opportunities. With invoice factoring, the wait is over and then the growth begins.