If your business needs a cash infusion, invoice factoring may be an excellent solution. Through invoice factoring, your company will be able to sell a portion of its sale invoices without having to worry about additional requirements, such as a high credit rating. Invoice factoring is now being offered at rates as low as 0.7 to 2.0 percent, making it an affordable way for a business to get more breathing room.
In invoice factoring, a business sells some or all of the invoices that it has not yet collected. The third party company gives the business money for these invoices and then collects on the invoices themselves. The business is no longer responsible for the invoices once they have been sold.
Invoice factoring offers low rates because it is the purchase of an actual asset that the company has simply not yet collected. The actual rate will depend on how easy the accounts involved will be to collect, ranging from the age of the debt to the individual amount of the debt. Either way, it will be far more affordable than a traditional loan or cash advance.
Invoice factoring is the financing option of choice for businesses that want to keep their costs low or businesses that need to get a loan without an established business history or credit rating. For more information about invoice factoring and our new, lower rates, you can contact us at MY Company Funding. We can walk you through the financing options and the application process. We’re here to help get your business the funding it needs.