The invoice factoring is actually a condition when a firm sells their invoices due to a certain time in the future to a factor. The factor is actually the one who pays the firm the money for that invoice today. So the function of the factor as the one who lends you the money now for the future invoices. Are you still getting confused? Don’t worry about that because you can find out more here.
Invoice factoring and how it used commonly
For you who get involve in a factoring business will know about the invoice factoring. This is actually a smart strategy that we as the one who have a factoring business use. It is short can be said that it is a strategy to make your money flow stable. And the key for this strategy is the factor.
Do you know what the important thing about the factor is? The factor is going to be your savior in stabilizing your money flow so that you can give and take the best service for your clients. The factor will lend you some money first for your future invoice.
Then how does it work?
Typically a factoring business will have invoices with their customer. The invoices are the promise of the payment where the clients give to you. However, you can’t just wait for that money which is usually spent for about 30 – 60 days, right? So this is where the factor will lend you some money as much as your future invoices. It is a smart move to keep your money flow stable, right?
Well, the best part is that you can borrow for up to $150K through invoice factoring. It is a big number, right?
So what are you waiting for? Let’s use the invoice factoring system and keep your money flow stable!