Invoice Factoring
Invoice Factoring
What is Invoice Factoring?
Invoice factoring is a financing solution in which a business sells its outstanding receivables to a factoring company and receives immediate cash in return. Instead of waiting for customers to pay, factoring gives you instant working capital so you can pay bills, make payroll, cover daily operating expenses, and grow your business effortlessly.
Your business needs cash flow to build and grow its business. It’s difficult to build your business when you are waiting for your customers to pay you.
Smart Finance allows you to get paid immediately. Instead of waiting for unused invoices to be paid, send them to Smart Financial to get paid immediately. Once we buy your invoices, we become your accounts receivable.
Take control of your cash flow with invoice factoring from Smart Financial.
How Invoice Factoring Works?
The process is very simple. A business provides labour, services, or products to its customers. When the customer is billed, the unpaid invoice is first sent to the factoring company. The factoring company gives the business an advance the same day for a percentage of the invoice amount, usually 90%.
The invoice is then forwarded to the customer, who processes and pays it on his usual terms. The customer then pays the factor. Once the customer has paid the invoice, the remaining balance, less a factoring fee, is transferred to the company.
Steps of invoice factoring
- Do the work and invoicing as usual.
- Send the invoice to the factoring company.
- Receive an advance from the factoring company.
- The customer pays the invoice to the factoring company.
- The remaining balance, minus a fee, is paid to you.
What you need to get started
Minimum qualifications
530+ FICO
3+ months in business
$10,000 in monthly revenue
Your business is B2B
What you need to apply
Basic business information
Basic invoice details
Bank connection or 3 months most recent bank statements
Applications for more than $250,000 may require additional information.
Play it smart: save time and get approved
