Invoice Financing / Factoring

Invoice financing is a type of funding that allows businesses to borrow money against their outstanding invoices. The lender advances a percentage of the invoice amount, and the borrower repays the loan when the customer pays the invoice.

The borrower submits their outstanding invoices to the lender, who advances a percentage of the invoice amount, typically up to 90%. The borrower then repays the loan plus interest when the customer pays the invoice.

The amount you can borrow will depend on the value of your outstanding invoices and your business’s financial situation. Typically, lenders will advance up to 90% of the invoice amount.

Repayment terms can vary depending on the lender and the amount borrowed, but typically range from 30 to 90 days.

Interest rates can vary widely depending on the lender and the borrower’s creditworthiness. Typically, interest rates for invoice financing are lower than those for unsecured loans, such as credit cards or lines of credit.

It may be more difficult to get approved for invoice financing if you have bad credit, but there are lenders that specialize in working with businesses with less-than-perfect credit histories.

If your customer does not pay the invoice, you will still be responsible for repaying the loan. Some lenders offer recourse or non-recourse invoice financing, which can provide protection against non-payment.

You can use invoice financing for some or all of your outstanding invoices, depending on your needs and the lender’s requirements. Some lenders may require a minimum or maximum invoice amount to be eligible for financing.

To apply for invoice financing, you will typically need to provide information about your outstanding invoices, as well as information about your business’s financial history and creditworthiness. Contact us for customized solutions specifically tailored to your needs today.