According to Wikipedia, invoice factoring is a financial transaction that allows your company to sell its receivables to a third party at a discount.
How Invoice Factoring Works
What that means to you is that your company can grow and expand without you waiting for that receivable to hit your account. The key to any company’s growth is access to business capital and bank financing.
The challenge today with unpaid invoices or unpaid receivables (also known as AR Finance) is it can force you to pass up on additional business opportunities. This happens when you know your customer will not be paying you in a timely fashion. It’s no surprise that after the great recession more and more companies try to stretch their payables as long as possible. You know they do not pay the invoice on time.
When you sell your accounts receivable to a financing organization, that is factoring. This type of accounts receivable factoring is different than invoice discounting. Invoice discounting is when the business owners borrow money against their accounts receivables. When you choose invoice discounting, you’re agreeing to pay back the loan as soon as the customer pays you for the goods or services.
Let Sunwise Capital, one of the top factoring companies, help you today by eliminating the stress of too much month at the end of the money. Let us help you with the cash flow in your business. Imagine getting payments the very next day for your unpaid invoices for a small fee from Sunwise Capital. Unlike cash advances or business loans, you can leverage your accounts receivable without worrying about term loans.
This financing option dates back some 4,000 years to Mesopotamia where we see the factoring basics. From there, trade finance traveled to Rome. The Romans sold promissory notes at a discounted price. Next, we see accounts receivable financers take an active role during the 14th-17th centuries. We know factoring was used in Europe in clothing and manufacturing industries, especially for import and export companies. Factoring crosses the Atlantic to America with the Pilgrims around 1620. In New York, the garment industry doesn’t survive without invoice financing companies. Today, invoice finance, along with bank loans, merchant cash advances, and SBA loans take center stage.
Benefits of Invoice Factoring vs Other Business Loans
Receive Financing with Next Day Payments on Your Unpaid Invoices!
- Low, low rates
- You choose the customers you want to factor and the outstanding invoices
- Experienced account management professionals work with your team at no cost or obligation
- Your profits are protected when we verify your customers with free credit checks
To secure your company’s cash flow
Call our team 888.456.9223 today
Are Past Due Invoices or Delayed Payments Holding Your Business From its Growth and Expansion Goals?
Is it becoming increasingly challenging to meet your financial obligations, including payroll, supplies, and materials? At Sunwise Capital our top-notch factoring solutions put small and midsize companies back in the driver’s seat and control. You depend on your cash flow to keep your company moving forward. You need consistency and dependability to maintain a solid financial footing and to reduce the stress of not knowing when your next dollar will arrive. Sunwise Capital can turn your invoices into immediate cash. Why wait 30, 45, or 60 days to get paid?
What Are the Program Requirements?
- B2B customers only
- You demonstrably need cash flow to improve to continue to grow and expand
- Enable your creditworthy customers to get extended invoice terms (i.e., net 30, 45, 60). It’s based on their credit risk, not yours
- $25,000 per month minimum factoring amount
What Are the Benefits, Pros and Cons?
- Fast payments
- Easy application process
- You select only the customers you want to factor to maximize flexibility
- No cost professional expertise to manage your receivables and provide full support
- Ask about our nonrecourse factor and nonrecourse invoice factoring programs
- Let us verify your customers and protect your profits with free credit checks
Factoring Guidelines and Approval Processes
Minimum Acceptable Prospect Criteria
- Time in business is not a factor
- Monthly volume potential: $25,000 + (annual revenues over $300,000)
- Invoice terms: 15 – 120 days
- At least one creditworthy customer/debtor
- Personal credit score: 550 or higher
- No payment plans on Federal tax liens
- Open bankruptcies or recent BK’s
- Blanket UCC liens. We must be able to subordinate or release
- Fraudulent activity or a serious felony personally in your criminal history
Industries/Deals We DON’T Serve
- Progress billing
- Medical billing & insurance receivables
- International debtors
- B2C establishments (retail, restaurant, etc.)
How Much Does Invoice Factoring Cost?
Factoring costs, rates, and terms may vary depending on risk analysis, collateral quality and other factors.
Access Your Finances Online
Busy? On the road? Get immediate online access to your account to make cash flow analysis easy.
- Financing That’s Flexible
- Do you need flexibility when determining which invoice you need to factor?
- Choose one or choose all your invoices and for any time-period. It’s up to you.
- You have the freedom to select invoices plus you can do this without longterm contracts and hidden factoring fees.
Hate Paperwork? We’ll handle it for you!
- Spend the time on your business and not pushing invoice paperwork. You’ll find our staff professional. Let us manage your receivables paperwork for you – at no cost and no hidden fees.
- Customers Verification We want to make sure you get your payments. We can quickly check your customer’s credit and protect your profits.
- Stop Shopping
- Sunwise Capital, a top invoice factoring company, can offer a financial solution for all your business needs as a boutique lender. You will secure the best rates for your invoice factoring needs.
- Take advantage of our direct lending using our portfolio of banking, institutional and loan products to explode your business – fast!
- B2B only
- You need to improve your cash flow and your growth plans
- You want to give your creditworthy customers (net 30, 45, 60, etc.) clear invoice terms.
- You want to invoice customers after the work is done or products are sold
- You have the ability or the potential to factor at least $25,000 per month
Seize the Day
We all know that your cash flow impacts your business. With Sunwise Capital’s factoring program, we can help position your company to take advantage of the opportunities to explore new growth opportunities. Sunwise Capital’s factoring solutions provide small and midsized businesses the steady cash flow you need to keep your company running. Take steps to turn your invoices into cash – immediately.