Invoice Factoring Process
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Creative Capital Associates, Inc. > Blog > Invoice Factoring Process
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Customer Credits Drive Funding Availablity
One of the best parts of receivable factoring is the ability to grow a company and not be hampered by …
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Margin Awareness
For invoice factoring to be realistic as an ongoing working capital solution, you must know the effective profit margin for …
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Managing Customer Perceptions
This comes up less often than in the past, concern about the perception of receivable factoring by business owners. They …
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Invoice Factoring – How It Works
Many small businesses who are finally awarded a long sought after commercial or government contract have the dilemma of how …
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Factoring Fee vs Annualized APR
There is a distinct and real difference between a Factoring Fee and an Annual Percentage Rate when discussing the price …
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Guarantee Of What Exactly
Most commercial financing, such as invoice factoring, normally require the leading shareholder of the company to sign a personal guarantee …
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Bank Is On First
Legally you cannot have a bank loan that is secured by accounts and use factoring in parallel. The factoring company must have first security position on the accounts receivable it is purchasing for the purposes of making advances. Additionally since you have a loan contract with the bank, you would be putting the loan in jeopardy
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Is Factoring Right For Your Business?
Using invoices as collateral, factoring companies provide commercial financing by making advances on accounts receivable. An invoice is defined as a product and/or service that has been delivered / completed and accepted by a creditworthy customer.
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Pre-Billing Not Acceptable
Submitting an invoice to be factored by the factoring company prior to the work being done is called pre-billing.
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