Invoice Factoring
What is Invoice Factoring?
Invoice factoring, also known as accounts receivable factoring or simply factoring, is a financial transaction in which a company sells its outstanding invoices, or accounts receivables, to a third-party financial company called a factor.
The factor then assumes responsibility for collecting the payment from the company's customers on those invoices. In exchange, the factor provides immediate cash to the company, usually a percentage of the value of the outstanding invoices.
The company can use the cash received from the factor to fund its operations, pay suppliers, invest in growth, or for any other business purpose. The factor earns a fee or commission for its services, usually a percentage of the total invoice amount.
Invoice factoring is often used by small and medium-sized businesses that need to improve their cash flow and working capital. It can be an attractive option for companies that are experiencing rapid growth, have a seasonal business cycle, or have long payment terms with their customers.
The GO Funding team evaluates your specific business objectives and requirements. We can place you with the right organization based on our years of experience and extensive financial partnership network.
With a proven track record of getting businesses funded quickly, we can help you skip a few steps that would otherwise require you to contact multiple factoring companies.
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Invoice Factoring Services: Fast Cash for Your Business
Invoice factoring is a smart alternative financing option designed for small businesses like yours. With invoice factoring, you can get a cash advance on your unpaid invoices—often within 24 hours—so you don’t have to wait 30, 45, or even 60 days for your customers to pay.
Here’s how it works: the factoring company purchases your outstanding invoices and provides you with the cash you need quickly. This isn’t a loan, so no new debt is created. You get paid immediately, while the factoring company takes on the responsibility of collecting payment from your customers.
It’s a simple, fast way to improve your cash flow and keep your business moving forward.
Invoice Factoring Services for Your Business
Slow-paying customers can really hold your business back, especially when you depend on steady cash flow to keep things running. When cash is tied up in unpaid invoices, it can delay critical operations like payroll, hiring, paying taxes, managing accounting, and investing in marketing. That’s exactly where invoice factoring comes in. Also called accounts receivable factoring, it helps small business owners access the cash they need now to keep growing and moving forward.
