What Is Factoring?

What Is Invoice Factoring?

Invoice factoring has been around for thousands of years, and its origin goes back to merchants using such financing options in Mesopotamia. This form of financing is generated from a business’ unpaid invoices, which are assigned to an alternative lending company.

Security Business Capital’s flexible cash flow solutions allow you to turn your unpaid invoices into cash, oftentimes within 24 hours. No more waiting months for customers to pay!

Call Security Business Capital at 844-620-6500 for all of your invoice factoring needs!

 

How Does Invoice Factoring Work?

Unlike a business finance loan or merchant cash advance, invoice factoring enables a company to convert your accounts receivable to immediate cash upon the completion of a sale of goods or for services rendered. This cash can be used for day-to-day expenses, fund payroll, buy additional inventories, or increase your sales and expand your business. This is not a loan and does not add any burden of debt.

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With our no-hassle, easy-to-use sign-up form, you don’t have to deal with a mountain of paperwork.
Email Us Your Invoices

Email Us Your Invoices

After receiving your invoices and performing a few quick checks on services rendered, we establish a credit limit on the customers you submit for invoice factoring.
Get Cash Fast

Get Cash Fast

We give you up to 90% of the invoice amount within 24 hours, or even the same day. You then get the final 10% after your customer pays, minus a small processing fee.
Monitor the status of all your transactions online 24/7, in real time, through our eFactor System, at no extra charge!

Why Choose Invoice Factoring Over Traditional Financing?

Invoice factoring allows you to access cash fast, all without the headaches that come with applying for a traditional loan. Also called accounts receivable financing, factoring is a low-cost alternative to traditional capital financing, which can sometimes take weeks, or even months, to receive approval.

Working with Security Business Capital allows you to focus on your core business instead of worrying about hunting down customer payments. This provides you with a quick and easy way to access the cash you need to pay your bills on time, meet payroll, invest in new equipment, and grow your company.

Invoice Factoring Step by Step

 

Factoring Vs. Traditional Lending

When comparing invoice factoring to traditional lending, the advantages of factoring become clear. In addition to a low factoring finance fee, oftentimes this fee is only 1%-4% of the invoice amount, many of Security Business Capital’s invoice factoring clients actually reduce expenses by outsourcing credit and administration to Security Business Capital.

Factoring

Fast Approval Process (often same day or within 24-hours)
Will Work with Start-up Businesses

Is Not a Loan, so Your Company Does Not Assume Any Debt

Back Office Support at No Extra Charge

Greater Funding Availability

Bank Loan

Time-Consuming Approval Process
New Businesses Start-ups Rarely Qualify for Traditional Loans

Puts You in Debt - Negatively Affecting Your Balance Sheet

You Handle Collections / Credit, and A/R management

Limited Funding Availability

Top 5 Factoring Benefits

Factoring invoices makes good financial sense for businesses who want to access cash fast while limiting the debt and stress that comes with traditional lending. Here are the top reasons why accounts receivables factoring can work for you:

  • 1

    Quick access to cash

    You can get cash within 24 hours or even the same day. Use your working capital to pay operating costs, hire new staff, or expand into new areas.
  • 2

    Debt-free financing

    Factoring does not create new debt because it is not a loan. You just pay a small fee to get your cash sooner, allowing you to leverage the money you already invoiced for services rendered.
  • 3

    Minimize worry and stress

    Small business owners who have trouble paying bills encounter a tremendous amount of stress and worry. Factoring finance pays you in advance for accounts receivables, and then we collect from your customers on your behalf, freeing you up to focus on your core responsibilities.
  • 4

    Ability to expand your business

    Cash flow allows you to expand your business by growing your accounts and even servicing new areas. Our flexible capital finance put cash in your hands, enabling you to hire new employees, expand marketing efforts, and create new products and services.
  • 5

    It’s flexible

    Security Business Capital’s flexible accounts receivable financing solutions offer customized business factoring programs that fit your unique needs. You can factor one invoice or all of them. You decide.
Same-Day Funding With Security Business Capital’s same-day funding and 24-hour account access, your company can take advantage of new opportunities as they arise, instead of waiting for clients
to pay their bills.

This flexibility lets you pay your employees and suppliers on time, as well as allows you to fill even more orders and increase your revenue. Security Business Capital gives your company the working capital it needs to survive and thrive.

Our clients also improve their financial condition, as factoring invoices for cash enables some businesses to “get current” or reduce strains caused by tight cash flow.

Talk to us today about our flexible invoice capital finance options that meet your specific circumstances.

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