What is invoice factoring?
Invoice factoring, also known as accounts receivable financing, is an alternative funding option for small business owners. When your business finances its AR, you have quick access to working capital that can be used to increase your reveunes.
Is accounts receivable factoring a loan?
Factoring is the purchase of a company’s accounts receivable as opposed to a loan that creates debt on the balance sheet. You are simply speeding up your cash flow with invoice factoring by utilizing an asset your company already owned.
Do I have to factor all of my invoices when I start factoring?
No. You decide which invoices you want to factor and which invoices you want to keep as your own. There is no requirement to factor all of your invoices.
How long does it take to get approved and setup for invoice factoring?
You can be ready for your initial funding in as little as three business days. After your initial funding, your invoices can be funded you the same day they are received.
What will my customers think about factoring?
Factoring has become very common and most companies realize that rapidly growing companies require more working capital than traditional banks can provide. When a company factors its invoices, it strengthens its financial position. This improves their ability to serve their customers in an efficient manner.
Does factoring hurt my business credit score?
The answer is no. It does not hurt your credit score because invoice factoring does not incur any debt for your company. In fact, factoring can help improve your credit score as you will have the cash available to meet your regular financial obligations.
Why should I work with Webb Capital & Consulting?
Generally, we know people don’t love working with a middle man. However, in this case, working with a broker can be a great thing for you and your business. First, working with a broker can save you a lot of time. It can take you or someone on your team a lot of time and effort to research the hundreds of factoring companies across the nation. Each company will have specialized programs, rates and terms.
We’ve already done the leg work for you. We have personal relationships with each of our funders, and have been conducting business with most of them for years. Our partners are well-vetted by us and trusted within the industry. We are extremely familiar with their programs and what they have to offer. Therefore, once Webb Capital & Consulting has an understanding of your funding needs and what you’re looking for in a factoring company, we can connect you very quickly to one of our funders. We want the process to go as quickly as possible so that you can be on your way to getting the cash flow you need.
Additionally, and maybe most importantly, going through a factoring broker can save you money. While it might seem like a better idea to call a factoring company directly, this isn’t true. Because we have close relationships with all of our funders, they are able to pass along savings and special rates that ordinarily might not be available to you.