Invoice Financing for your Business

Is invoice financing right for you? If your business from time to time comes up against a cash shortage and you are billing out jobs on a 30 - 60 -90 day cycle then you can take advantage of Invoice Financing to free up some much needed capital and move forward with your businesses plans for the future.

Fast Business Financing

Invoice financing has been utilized by companies for a very long time. It is believed that the industry started around 4,000 years ago in the days of King Hammurabi of Mesopotamia. This was also around the time of the Babylonian and the Sumer empires; later the Romans began selling promissory notes at a discount. In modern day, we can trace these modern day financing back to the 1300s when in Italy money was advanced against the delivery and payment of grain shipped abroad. This moved through to the term ‘merchant banking’ in the 1600s and 1700s, where funds were advanced for goods before they were shipped overseas.

The first industry in the United States to use invoice factoring as a standard business procedure was the textiles industry. These companies had huge expenditures in cotton and raw materials which were required to fill orders and ultimately earn considerable profits.

Starting in the 1960s, companies and industries experienced greater difficulties and increasing delays in trying to obtain bank loans and other types of traditional business funding. 

That is when modern companies of all types realized that getting advances against outstanding invoices really made sense. If you have a pile of invoices sitting there why not turn them into cash after all in business cash is king right?

One aspect that makes this type of financing so attractive is how quick and easy it is to get funded. Typically A simple application usually one or two pages long is filled out, you submit that with the invoices you would like to get financed and within 24-48 hours you get funds deposited right in your bank account.

Just about any industry can be financed with invoice financing with few exceptions. Pretty much if you do business with other companies there is a really good chance you will qualify for this type of financing.

 How Invoice Financing Works      

Invoice factoring is a form of invoice financing that allows companies to sell their accounts receivable to improve their working capital. This financing provides the business with immediate funds that can be used to pay for company expenses.

Business Finance Alternatives

Factoring is easier to get than conventional financing because you are technically selling an asset rather than getting a business loan. The most important requirement to qualify is to have invoices from creditworthy commercial clients. As a result, factoring is available to small businesses that don’t have substantial assets or a long credit history.



Fees involved in Invoice Financing 
Typically in an invoice financing relationship there are no set up fees or fees to maintain an open account. Once you submit an invoice for financing the finance company will advance up to 80-85% of the value of the invoice once the balance is collected you receive the remaining portion of the balance minus the finance fee which is typically 2 to 3.5 percent. This is about the same percentage as accepting a credit card.

Most business invoice finance companies will set up an account and leave it open so you can just submit invoices when you need capital for any purpose for your business.  This makes invoice financing such n attractive financing option for businesses nationwide.

If you have invoices you would like to submit for financing contact a professional invoice financing company like NorthWest Finance. We finance all types of businesses in many types of industries. Our business finance application process is seamless and fast. Get the financing you need for your business in hours not weeks. 

WHEN BANKS SAY NO WE SAY YES!!

NorthWest Finance
612-615-8196
www.businessinvoicefinancing.com

Invoice Financing | Purchase Order Financing | Merchant Cash Advances | Leasing