How Does Invoice Factoring Work?

Business owners are always looking for ways to improve their cash flow. Some have realized the effectiveness of working with invoice factoring companies. Factoring companies purchase the accounts receivable (A/R) and provide business owners with necessary cash to pay for expenses such as payroll, inventory, office supplies, marketing, advertising and even taxes. While you could go to a bank for financing, when you do, you incur debt.

Invoice factoring, also referred to as selling invoices or selling accounts receivables, is a process where companies offer open invoices for sale to an invoice factoring company. The account receivable finance company, or factor, assigns a value to the invoice portfolio based on the ability it has to collect, the industry they serve, the credit reputation of the debtors, and the total amount due before offering a factoring and advance rate for the invoices. If the valuation is deemed fair by the company selling the invoices, the transaction is closed.

An Effective Financial Solution

Cash is one of the most important things businesses need in order to keep the business cycle going. When businesses choose to offer goods and services on credit in order to entice new customers to make purchases, they often find themselves in a cash flow pinch. Invoice factoring for business cash flow needs is a great way to keep the business cycle moving by providing the necessary cash to fulfill orders without adding debt to the balance sheet.

• Nationwide
• Rates as low as 0.55%
• Factor $25000 to $5,000,000
• Funding within 24 hours
• No hidden fees

At Oncepts, we turn your outstanding invoices into cash through invoice factoring. By combining the latest advancements in technology and security with the expertise and care of our team, we’re able to serve business owners nation-wide with efficiency, simplicity, and honesty.