Accounts Receivable Financing
Provide cash flow by funding your accounts receivable in terms anywhere between 30-90 days .
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Tied to receivables
Up to 1 year
Time to Funds
As low as 1.5%
How invoice factoring works.
1- Submit unpaid invoices for work completed
2- The factoring company verifies invoices and advances you the funds (up to 80-95% of the invoice amount) within 24 hours
3- The factoring company collects payment from your customer according to your payment terms
4- When payment is received, the factor releases the remainder of the invoice amount, minus a small factoring fee.
What Is Invoice Factoring?
Invoice factoring, also known as accounts receivable financing, is an alternative funding option for small business owners. By financing your Accounts Receivable, you have fast access to working capital that you can use to build your business.
What Types of Businesses Use Invoice Factoring?
Businesses that are selling goods or services to other businesses can use invoice factoring to gain necessary working capital. Factoring companies can help businesses of all sizes in almost any industry. Industries include staffing, transportation, manufacturing, distribution, information technology and many others. Fill out our application to see which option best suits your business needs.
How Long Do I Have To Be In Business To Qualify For Factoring?
You don’t need to be in business long – If you have an invoice, we can help get you funded. Even if you don’t have an invoice yet but you just secured a new contract, we can get you set up.
What Types of Invoices Are Eligible For Factoring?
Factoring provides funding for both new invoices and outstanding invoices. Eligible invoices are:
– Current – Not overdue according to your company terms
– Payable by another business – Invoice factoring is not an option for consumer-pay invoices.
– Unpledged – No other company can have a claim to the invoice.
What Is The Difference Between Recourse And Non-Recourse Factoring?
There are two different types of factoring programs – recourse and non-recourse. With recourse, your business must buy back receivables that the factoring company is unable to collect payment. In a non-recourse factoring agreement, the factoring company takes the risk of non-payment by your clients. Because of the added risk, non-recourse factoring fees are slightly higher.
After Applying, How Long Does It Take Before I Know If I Am Approved?
BizLender can approve you for Accounts Receivable Financing in as little as 24 hours after we receive your application and required documents.
My experience with BizLender has been very pleasant. They are very professional and keep in touch with you through their process of your loan. Thanks for the updates.