For many cash-strapped business owners, their capital is often tied up in invoices. When they need to free up that money quickly there are two options, by selling the invoices or using those receivables to obtain a revolving line of credit through a loan secured by those assets. AdvancePoint Capital’s seasoned representatives will be glad to speak with you and together we can weigh these options to determine which is best for you and your business. Here’s a brief overview:
The sale of invoices is known as invoice factoring, and is the most popular of the two options. That’s because funding via factoring is easier to obtain since you are selling an asset as opposed to asking for a loan. This option provides an ideal solution for small businesses that do not have either a long credit history or substantial assets on hand. The general rule is that for companies with under $2.5 million in monthly revenue, that invoice factoring is the way to go.
For those business who qualify, AdvancePoint Capital provides assistance for owners to secure credit lines up to $2.5M on receivables that are due in 90 days. This strategy enables working capital-strapped business owners to cash in the money trapped in unfulfilled invoices. Here’s how it works: invoice factoring transactions are generally structured. This way your company sells its invoices in two installments. The first installment will be about 80% of your invoices’ total value and is deposited the day after the request for funding is made. The remaining percentage, less the finance fee is deposited when the customer pays the invoice in full. These funds may be put to any purpose the business owner wishes.
Unlike banks, the entire funding process can be quick, easy, and painless. To begin, we make it easy to apply. For those seeking invoice factoring financing, we offer a single page application, and require only Accounts Receivable and Accounts Paid reports. Best of all, we do not institute a credit check on the business owner. We understand the ebb and flow of business, so if a less than perfect credit score has limited your financing options, you’ll want to speak with a representative at AdvancePoint Capital. We invite all interested parties to contact our agents 24/7 by calling (800) 381-8920, or by filling out and submitting our form.