Factoring is a type of financing that helps improve the cash flow of companies that have slow paying invoices usually waiting 2 to 3 months. A factoring company purchases the accounts receivable of the client. This purchase gives the client access to immediate funds which can be used to pay for business expenses.
This is a solution that has a number of advantages and very few disadvantages.
To qualify to have your invoices is easy and done quickly. Simply go to www.alphainvoice.com and submit that
form and you can get cashflow in 24 hours. These benefits can make receivables factoring a ideal alternative
for new and growing companies with a cash flow shortage.
HOW DOES A FACTORING COMPANY BUY INVOICES?
Most factoring companies purchase invoices in two instalments. The first is the cash advance of 75% of the receivable (this amount can vary depending on the relationship with the client.) The remaining 25% less the factoring fee, is rebated as soon as your client pays ine invoice in full. Here are the steps.
- You submit the invoices by our online application going to www.alphainvoice.com
- Alpha Invoice sends you the advance via online transfer into your bank account.
- Your client pays 30 to 60 days later.
- Alpha Invoice company sends you the rebate (e.g., 25% less the fees charged)