
INVOICE FACTORING
Invoice factoring provides working capital upfront for your unpaid customer invoices. This option helps businesses maintain their day-to-day operations and expenses. Invoice factoring is not considered debt but instead a sale of account receivables. This is a great alternative compared to other funding options.
Pros:​
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A fairly simple and easy approval process
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Entrepreneur and startups friendly
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Improve cash flow for immediate business expenses such as payroll
Cons: ​
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Business monthly recurring revenue generally must be at least $30,000
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Cost of borrowing may be high
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Customers of business applying must be creditworthy
Best for:
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Business with invoice or accounts receivables that need cash right away
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Invoices with 30, 60 or 90-day payment terms are best
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Fast-growing companies
