What is an Invoice Factoring Company?

NEW YORK - Dec. 22, 2015 - PRLog -- What is an Invoice Factoring Company?

An Invoice Factoring Company is a business that purchases invoices from a Customer for immediate cash.  Here is a simple way to view Invoice Factoring.

A customer will invoice their client (debtor) for normal goods and services that have been delivered.   The customer will sell that invoice to a factoring company to get paid.  The customer will normally receive between 70 and 90% of that invoice overnight.

According to the terms of the invoice, the client/debtor will pay the customer for the invoice when the invoice is due.  This payment will be sent or made to the Invoice Factoring Company directly.

When the Factoring Company receives the payment from the client/debtor, they will pay the customer the remaining balance of that invoice less its fee.   The fee is based on the amount of time it takes the client/debtor to pay the invoice.

Invoice Factoring is a simple, fast and affordable way to generate immediate cash.  Every business owner should ask themselves:  "Would you rather have cash or receivables?"