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Invoice Factoring Solutions
Monthly Financing Programs Starting at $50K

Invoice Factoring and Invoice Factoring Companies

Imagine having the cash for your business needs, when it’s needed. Invoice factoring with TCI Business Capital provides essential cash when you need it. Factoring is a fast, simple type of financing. Companies get immediate cash for their invoices, without waiting weeks or months for payment from their customers.

Invoice factoring provides consistent cash flow by selling your open receivables (invoices) to a third party known as an invoice factoring company. The increased cash flow is used to keep up with business demands such as bills, payroll, new resources, and growth.

How Invoice Factoring Works

Invoice factoring eliminates the waiting for customer payments.TCI Business Capital makes invoice factoring easy. It’s based on your customer’s credit and payment history. With invoice factoring, which is also called invoice financing or accounts receivable factoring, a business sells its outstanding invoices for an immediate cash advance. The invoice is sent on to the customer, and once it’s paid, the remaining balance of the invoice, less a small fee, is remitted to the client.

Benefits of Invoice Factoring

In addition to the improved cash flow, companies enjoy many additional benefits when they choose invoice factoring as their source of financing.

The benefits of invoice factoring with TCI Business Capital include:

  • Same-Day Cash on Receivables
  • Low Factoring Fee’s
  • Month-to-Month Contracts
  • Customized Programs
  • Dedicated AR Specialists
  • Full Treasury Services
  • Free Credit Checks on New and Potential Customers
  • 24/7 Online Reporting
  • More than 20 Years of Experience

Get a Quote for Invoice Factoring

Comparing Invoice Factoring Companies

As with any important decision, it’s good to review choices and make comparisons before choosing a factoring company. As you begin the process, make a list of the important things you want from a relationship with an invoice factoring company. A good starting point is the two biggest components in a factoring agreement; rates and services.

Invoice Factoring Rates

The term invoice factoring rates has come to refer to both the advance rate and the factoring fees. The advance rate is the percentage of your invoice amount, the factoring company advances, when the invoice is funded or purchased. Advance rates vary based upon a number of variables such as industry, payment terms, and type of invoicing. For industries such as Oilfield Services, Staffing, or Transportation, where payment terms are n30 or n60 and invoicing is done on completed work, 90 percent advance rates are the norm. For construction, manufacturing, or other industries with longer payment terms or progress billing, lower advance rates such as 60 – 80 percent are standard.

The factoring fees are the cost of factoring. This is the fee which is deducted from your remittance, once an invoice has been paid by your customer.  Factoring fees are based on a couple of points; the volume of invoices you factor each month and how long your customer takes to pay the invoice. There are other considerations that can affect the fees such as the overall concentration on the account and debtor payment histories. Overall, when shopping around and comparing factoring rates, there is often no difference in advance rates, but you may find factoring fees vary between invoice factoring companies. If this happens, be sure to look into and compare the services being offered.

Invoice Factoring Services

Where there is not much of a difference when comparing factoring rates, there can be a big difference when comparing the services offered by factoring companies. For many businesses that use factoring, the services are what they most appreciate. Here are some key services offered by top invoice factoring companies.

  • Credit analysis and risk assessment. This is an extremely valuable service for companies working with new customers or certain customers on an infrequent basis. Knowing a customer’s payment history and their ability to pay invoices in a timely manner goes a long way towards reducing bad debt from unpaid invoices. This information can also be helpful in determining and building long-term relationships with customers.
  • Accounts Receivable Management. A/R management is a key service that frees up time for business owners. The best invoice factoring companies have dedicated A/R Specialists who work on behalf of the factoring client and company to make sure invoices are paid in a timely manner. These A/R Specialists will have good working relationships with the customers and help to resolve any billing issues or inaccuracies so invoices are processed and paid.
  • Industry Expertise. This is crucial for a successful factoring experience. The top invoice factoring companies have staff who are experienced in factoring and knowledgeable about the client’s industry. Understanding how the industry operates and the issues the client faces helps to smooth out or resolve issues before they become major problems.

When comparing invoice factoring companies, costs are an important element. But be sure to consider the level of service and how you will work with the factoring company over time.

How to Qualify for Invoice Factoring

Businesses that invoice other businesses on net terms can quickly and easily qualify for invoice factoring.

Invoice factoring turns invoices into same-day cash

First, instead of looking at your credit and financial history, we look at your customers’ financials and payment history. Companies that don’t qualify for a bank loan or line of credit because of no credit, less-than-perfect credit, or maxed-out credit can easily qualify for factoring.

With TCI Business Capital, you need an average of at least $50,000 in monthly invoices to qualify for our programs. Our factoring lines go up to $20 million per month, giving you plenty of room to grow. Factoring is an ideal financing solution for both start-up companies and those that are expanding as it gives them the working capital they need to grow.

How to Begin Invoice Factoring

Because each company’s situation is different, TCI Business Capital’s invoice factoring programs are tailored to fit the unique needs of each client. We work with clients in many different industries, so we can customize a factoring program to meet your company’s needs.

Step 1 – Get a Quote

The initial step in securing a factoring line is to speak with a TCI Business Capital representative. We’ll discuss your cash situation and needs, and we’ll offer a free, no-obligation consultation and quote for a factoring line. Our simple and straightforward underwriting guidelines allow most customers to receive a written quote in 15 minutes or less. All quotes are customized for the specific needs of the client. We’ll work to make certain the factoring line meets your requirements.

Step 2 – Submit Invoices and Related Documents

Once a factoring line is agreed upon, we’ll schedule your first funding. We can accommodate most schedules and offer an expedited service for those in need of immediate cash. During the setup process, we’ll walk you through the agreement and discuss your invoices and any related materials.

Step 3 – Get Cash for Your Invoices

When the set-up process is complete, we fund you via ACH direct deposit or a wire transfer directly into your bank account. From this point forward, each time we receive your invoices, we’ll process and fund you the same day the invoices are received.

To apply for a custom factoring program fill out the form below or give us a call at (800) 707-4845. In as little as 15 minutes, we’ll provide a free, no-obligation consultation and quote for a custom factoring program to meet your business demands.

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