Invoice Factoring
Fund Your Business With Invoice Factoring
While receiving an upfront payment is ideal, it’s not always feasible. Invoice factoring offers a quick infusion of working capital, often within 24 hours, allowing small businesses to bridge the gap between issuing an invoice and receiving payment.
8 Minute
Application Process
A+ Rating
With the Better Business Bureau
$5.4 Billion
Funded To U.S Based Businesses
What is Invoice Factoring
Invoice Factoring Rates
Fees for online invoice factoring are determined by various factors, including the variance between the invoice’s value and our purchase price, the financial history and risk assessment of your business and your client, and considerations like the time taken for payment. Typically ranging from 1-5% of the invoice’s total value for each 30-day period the invoice remains outstanding, these fees are structured to align with the specific dynamics of the transaction.
Invoice factoring, a type of “accounts receivable financing,” offers a non-loan funding solution that allows your business to secure working capital promptly by leveraging unpaid invoices. In as little as one business day, we, as your lender, purchase your outstanding invoices at a discounted rate, providing you with a cash advance typically ranging from 70-90% of the invoice’s value, up to $100,000 per common ownership. Whether you prefer online invoice factoring for your entire sales ledger or specific bundles of invoices, we can accommodate your needs.
With Prime Source Solutions®, our responsibility extends to collecting payment on the invoice. Upon your client’s payment, we release the remaining value of the invoice (minus our fee), following terms usually spanning between 30 and 90 days. Recognizing the importance of your customer relationships, you can trust us to handle the professional collection of your invoices.
Who should apply for Invoice Factoring?
Invoice Factoring is well-suited for:
- Enterprises experiencing prolonged accounts receivable periods
- Businesses managing a high volume of outstanding invoices
- Bridging the gap between invoicing and payment reception
- Invoices exceeding $15,000 with extended credit terms, not surpassing 90 days overdue
- Businesses in need of swift funding solutions
- B2C businesses requiring smaller funding amounts
- Enterprises with lower credit scores or lacking collateral, such as real estate and major assets
Invoice factoring proves advantageous for construction companies, pharmacies, law offices, manufacturers, business services, and more. Regardless of your industry, our adept Funding Advisors are dedicated to collaboratively selecting the optimal funding option, ensuring your business attains its objectives without compromising cash flow.
Applying for Invoice Factoring is Quick and Easy
Step 1: Submit Your Application
Rest assured that your information is securely protected, and we only require essential details about your business along with the latest 3 months’ bank statements.
Step 2 Obtain a decision
Your assigned funding advisor will carefully assess various small business funding options with you to identify the one that aligns best with your specific requirements.
Step 3 Access Your Funds
Upon completing the online checkout process, you can expect to receive your funds as quickly as the same day, ensuring swift access to the capital you need.†
Step 4 Repayment
When your client pays their invoice, your funding is repaid. We’ll collect payment and send you the remainder, after deducting our fees.
How to use Invoice Factoring
Utilizing invoice factoring funding presents businesses with versatile opportunities as there are no rigid usage constraints. Here are some strategic applications for funds acquired through online invoice factoring:
Mitigate Cash Flow Gaps:
- Effectively address intermittent cash flow challenges without committing to lengthy loan terms.
Manage Recurring Expenses:
- Cover essential recurrent costs such as payroll, rent, utilities, and more while awaiting full payment from clients.
Fuel Growth Initiatives:
- Direct funds toward growth strategies, acquiring new equipment, or making other substantial investments with a compelling return on investment.
Seize Seasonal Business Opportunities:
- Capitalize on seasonal peaks by taking advantage of bulk inventory purchases or other opportunities that can enhance business outcomes.
Minimum Requirements for Qualification
Prime Source Solutions sets more accessible requirements for invoice factoring compared to traditional lenders and other alternatives. We understand that credit scores are only part of the picture, emphasizing the overall health of your business and collateral. Our considerations include:
- Type of Collateral: We refrain from using primary residences as collateral.
- Value of Collateral: Determined through recent property appraisals, county tax bills, and real estate schedules.
- Business Revenue: An essential factor in assessing your financial standing.
- Cash Flow: An indicator of your business’s financial liquidity.
- Vendor Payment History: Reflects your business’s financial responsibilities.
- Years in Business: Demonstrates your business’s stability.
- Public Records: Considered for a comprehensive evaluation.
6 Months +
In Business
625
Credit Score
$100k
Businesses Annual Revenue
Business
Bank Account
Invoice Factoring FAQ