Invoice | Factoring

You sell that outstanding invoice to a factoring company (the factor).

The process is straightforward and typically involves three main steps:

Factoring is generally more expensive than traditional bank loans. INVOICE FACTORING

In "recourse" factoring, you must buy back unpaid invoices. 🔍 Factoring vs. Traditional Loans Invoice Factoring Traditional Bank Loan Approval Basis Customer creditworthiness Your business credit and history Speed Setup in days; funding in hours Takes weeks or months to approve Debt None (it is a sale of assets) Adds a liability to your balance sheet Collateral The invoices themselves Hard assets often required 🏁 Is Invoice Factoring Right for You?

The factor will interact directly with your customers to collect payments. You sell that outstanding invoice to a factoring

Approval is based on your customers' credit, not your own.

Businesses use this tool to meet their immediate cash needs instead of waiting for customers to pay. 💡 How Invoice Factoring Works 🔍 Factoring vs

The factor pays you the remaining balance, minus their agreed-upon service fee. ⚖️ Key Advantages and Disadvantages