Graco Mortgage

Why Factor

 
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What is invoice factoring?

 

Factoring is an effective form of business financing in which you sell your invoices to a factoring company in exchange for immediate payment. It eliminates the 30 to 60 days that your customers take to pay your invoices and provides you with the working capital you need to run your business.

 

 

Factoring invoices is simple and ca be used by most businesses.

Here is how it works.

    * You deliver goods / services to your client and issue and invoice

 

    * You sell your invoice to a factoring company, who immediately advances you the1st installment. This will be between 70% and 90% of the  gross value of the invoice. You usually receive the advance in as little as 24 hours.

 

    * After 30 to 60 days, the invoice is paid by your customer and the factoring company advances you the remaining funds as a 2nd installment, less a small financing fee.

An important result of the using invoice factoring you will get predictable cash flow. Factoring eliminates the uncertainty of when you will get paid.

 

 

Benefits of factoring your invoices

 

Using factoring to finance your business has a number of benefits.

    * Factoring invoices give you predictable cash flow. It eliminates the uncertainty of when you will get paid by your customers.

 

    * Invoice factoring lines are tied to your sales. Your financing line grows as your sales and your company grows.

 

    * Factoring is easy to obtain and can be set up in days.

 

    * Factoring invoices is ideal for established companies or startups.

 

 

Are factoring and purchase order financing easy to obtain?

 

Obtaining an invoice factoring financing line is a lot faster, simpler and easier than applying for a conventional business loan. The biggest requirement is that your company must do business with reputable customers, since your invoices are the factoring company's collateral. This makes it an ideal product for both established businesses or startups, whose main asset is a solid roster of reliable customers. Generally, a factoring line can be established in 2 to 4 days.

 

 

Factoring Program Details

 

Facing a problem because your clients pay in 30 to 60 days? Need to get paid sooner? Most new and growing businesses can not afford to wait up to 60 days to get paid. There are suppliers and payroll commitments that must be met. But often, securing the funds to meet these obligations is difficult.

 

Factoring can provide you with the funds to pay employees and suppliers. It provides predictable cash flow. Helping you to manage and grow your company. It can benefit you if:

    * You are growing quickly

    * You have been close to missing payroll

    * You have delayed paying critical suppliers\

    * Your clients take up to 60 days to pay their invoices

 

 

Factoring rates as low as .5% to 1.59%. Advances as high as 90%.

 

(Subject to monthly volume and industry)

 

 

Submit your request and get a quote now.