Factoring 101 – Factoring Information
Factoring is not difficult to understand or utilize. Your company will continue to operate and to bill your customers in the usual way. Once you begin factoring you will send a copy of the invoices to BTB. BTB will then provide you with a factoring advance and fund your business 80% of the face amount of the invoices.
Once BTB is paid by your customer, the reserved amount of the factored invoice, (20%), will be released to your company minus the appropriate financing fee for the time which the advanced funds were outstanding.
The factoring financing fee is based not on the financial strength of your company but rather on the quality of your customer accounts and their creditworthiness. The cost is based on the creditworthiness of your account debtors and the performance of your receivables. The cash flow factoring fees can be as low as 2% of the invoice amount, depending on the level of risk involved and the amount of time which the invoice is outstanding.
The initial set up time for a new client is typically 3 to 5 business days. Once your account has been set up the turn around time for you to receive funding for your invoices will be between 12 and 24 hours. BTB is often able to wire transfer your advance directly to your bank account on the same day you provide us with invoices. We are your one stop shop for cash flow factoring.
To get started today, simply complete our online factoring application.
More factoring information and help: When you factor, you do not incur any debt, and there are no monthly payments. You control your cash flow by determining how much to factor, and when. Invoice factoring provides high growth companies the financial flexibility that growing businesses need to grow and thrive.
If you still have questions make sure to read our fantastic factoring articles.