What is Invoice Financing?

What is Invoice Financing?

First, Invoice Factoring is available to any company that bills credit worthy clients and must give terms or wait to get paid. So if you sell Trucking, Staffing, IT, Consulting, Food, Wine, Paper, Barbeque Sauce, Bullets, etc. and you give your credit worthy client terms of Net 10 to net 120 days, we can advance you up to 90% against your invoice. The key to this type of financing is you must deliver the product or service. Until your client takes possession of the goods and are happy then a true Accounts Receivable has been created and a factoring company can buy your invoice. 

Business Invoice Purchasing

Many types of industries are perfect candidates for this type of business finance however there are many times invoice financing can be considered as an option for finance.

SOME TYPICAL INDUSTRIES THAT BENEFIT FROM INVOICE FINANCING INCLUDE: 

Recruitment: Invoice Financing bridges the cash flow gap and enables businesses to operate whilst waiting on client payments.

Construction: Because there’s a high degree of risk associated with this industry, the prepayment level tends to be lower, say 60%, when compared to other industries. However there is a place and time for this type of funding

Manufacturing: This can enable manufacturers to boost working capital in order to manage peaks in demand and service new contracts.

Wholesale distribution: With invoice finance, wholesalers can gain access to cash directly linked to turnover as well as take advantage of early supplier discounts. 

Invoice Financing

If you generate an invoice and don’t want to wait to bepaid, Invoice Factoring is an option. If you don’t have the money to buy the goods from your supplier to fulfill an order, PO Funding or Purchase order Financing might work for you. Invoice factoring typically will not fund the entire value of the accounts receivable.The industry standard shows that a range of 70 to 90 percent of the value will be funded, with the remainder retained as a reserve. Unlike other financing solutions invoice financing can work with start up and growing businesses and give you the power to choose one time deals or ongoing monthly programs. 

With Invoice financing you also have the choice to turn over the payments collections or continueto perform that function yourself. This flexibility guarantees that your clients are never aware that you are utilizing financing to support your business.

Professional Invoice Finance Companies like NorthWest Finance can get  your comapny approved fast Invoice Financing Specialists. Contact Us Today.

North West Finance

Saint Paul, Minneapolis, Mn

612-615-8196

http://www.businessinvoicefinancing.com

Invoice Financing, Invoice Purchasing, Business Finance, Business Financing, Business Invoice Financiers