Manufacturing companies offer their customers extended payment terms on products. These longer payment terms sometimes create stress on cash flow and can affect the bottom line. Many small and mid-size manufacturers use invoice factoring as a source of reliable, consistent cash flow. Factoring provides manufacturing companies cash to meet payroll, purchase raw materials, and market their products.
Invoice factoring is a type of financing used by businesses in many different industries, including manufacturing. The factoring process is simple. Once a company sells their products or completes its service, the customer is invoiced. Businesses using factoring send the invoice or invoices to their factoring company. The factoring company pays an immediate cash advance based on the percentage of the invoice value, generally around 90%. The invoice is then sent on to the customer for processing and payment. Once the invoice is paid to the factoring company, the remaining balance, less a small factoring fee, is paid to the business.
Factoring is an ideal source of financing for manufacturers that do not qualify for traditional funding or companies in need of immediate access to funds. Qualifying for invoice factoring is a straightforward process, and an account can be set up in a manner of days. Once a company begins factoring on a regular schedule, the ability to control finances and manage cash flow is much easier.
Manufacturing firms using factoring get access to needed cash and eliminate the stress of waiting on customer payments. Top factoring companies like TCI Business Capital also provide value-added services such as accounts receivable management, credit analysis of prospective customers, as well as industry insights and market analysis.
Invoice factoring for manufacturing companies is not a one size fits all solution. TCI Business Capital offers customized factoring programs designed to meet the specific needs of each client. The key features of our factoring solutions include:
Getting started with TCI Business Capital is simple. Call (800) 707-4845 or fill out the online form. A representative will contact you and discuss your situation and needs. You will learn more about the services and benefits we offer and a quote on a factoring program with TCI Business Capital.
TCI Business Capital is a leading invoice factoring company with over 25 years of experience. Clients from a wide variety of circumstances and industries use factoring from TCI Business Capital. We have a proven track record of providing funds companies across the country have used to grow and succeed.