How does invoice factoring work?

Invoice factoring is a financing solution that any business with outstanding invoices or accounts receivable can use. Factoring entails a factoring company purchasing your unpaid invoices. This enables you to receive cash immediately instead of having to wait until the end of the invoice payment term.

How much does invoice factoring cost?

The factoring discount or fee depends on the industry, customer strength and performance of the customer accounts. We will provide the specific terms prior to factoring and suggest ways to minimize the costs.

What other services are provided by Accel Business Funding?

For our Factoring clients, we offer:

  • Free online account
  • No application fee
  • Free credit check
  • Assistance in collection

Our funding program also includes:

  • Asset Based Lending
  • Accounts Receivable Financing
  • Inventory Financing
  • Business Line of Credit
  • Supply Chain Financing
  • Business Loans

Will factoring invoices look bad to my customers?

Invoice factoring is a common and established business practice. Most businesses understand that invoice factoring is an efficient way to obtain working capital. Thus, it is highly unlikely that factoring your invoices will alter your customers’ perception of your business.

Is invoice factoring a loan?

Invoice factoring is not a loan. It is a direct and simple transaction: you sell us your unpaid invoices and we purchase it.

What makes invoice factoring with Accel Business Funding better for my business better than a traditional bank loan?

There are multiple reasons why invoice factoring is a better option than a traditional bank loan:

  • Speed: It’s much faster. The approval process for a bank loan can take weeks while Accel Business Funding can approve as quickly as 24 hours.
  • Flexibility: Invoice factoring is a flexible arrangement: business owners decide which invoices to sell and the money received can be used in any capacity, because it’s already yours.
  • Ease: The application process is much easier at Accel Business Funding than it would be at a bank. A bank approves loans based on your credit history, financials, and assets while we look to the creditworthiness of your customers paying the invoices. In other words, there will be fewer hurdles to overcome during the application process.

How does invoice factoring benefit my business?

At times, invoices can take up to several months to be paid. This can be detrimental for certain businesses as they may be unable to sustain their daily operations without the needed payments. Therefore, invoice factoring is a quick and easy solution for businesses and allows them to meet current needs, from equipment upkeep to employee salaries, without incurring debt.

Which industries does Accel Business Funding work with?

Accel Business Funding works with businesses across different industries:

  • Staffing
  • Transportation
  • Apparel
  • Business Services
  • Wholesale and Distribution
  • Manufacturing
  • Cosmetics
  • Food and Agriculture
  • IT and Technology
  • Online Businesses

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California's Loans made or arranged pursuant to a California Finance Lenders Law license

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