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Invoice Factoring & Purchase Order Financing Small Business Funding Solutions |
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Small business owners need capital to fuel their business. Obtaining this capital however, can be an elusive quest. Traditional funding sources such as banks require a strong company balance sheet and secondary sources of repayment (typically in the form of outside collateral). The problem with this is that few small business owners meet these requirements and find it frustrating when speaking to banks about a business loan.
So where do small business owners turn when they do not qualify for traditional financing? The answer, factoring companies. Sometimes referred to as asset-based lenders, factoring companies provide funding to small businesses when the banks say “no.”
Here are some benefits of factoring to small businesses:
1) Factoring companies lend against the face amount of the invoices
Funding is provided against the face amount of your invoices and not based on the financial strength of your company. Simply put, banks look at your financial statements and personal guarantee strength when making their loans and factoring companies look at the quality of your accounts receivable.
2) Factoring companies are more concerned with your customer’s credit
When making their lending decisions, factoring companies look to the financial strength of your customers and their payment history. A solid payment history and a verifiable invoice are two of the key things factoring companies look for when making their lending decisions.
What Exactly Is Factoring or Accounts Receivable or A/R Financing and How Can It Help You?
Factoring is a form of asset-based financing and is the process of selling commercial accounts receivables by a business in order to obtain immediate cash payment of the accounts before their actual due date.
Factoring differs from borrowing in that the accounts receivables are actually sold rather than merely offered as collateral.
The process called “factoring”, in the simplest terms, means Vision advances you up to 95% of the invoice amount immediately, and gives the remaining balance when your clients settle in full. Invoices can be submitted for factoring directly upon completion of work or product delivery. Revenue flows directly and instantly to you. In return, Vision receives a small fee at the end of the process. The approval time can be as little as 2 or 3 business days and you’re not locked into a long-term contract. Vision allows you the flexibility to factor only when you need it, and as often as you like. We base our approval decisions on your customers’ ability to pay, and not the credit of your growing business. Ask us about both invoice factoring and purchase order financing.
Improve Cash Flow Without Additional Debt
So where do small business owners turn when they do not qualify for traditional financing? The answer, factoring companies. Sometimes referred to as asset-based lenders, factoring companies provide funding to small businesses when the banks say “no.”
Here are some benefits of factoring to small businesses:
1) Factoring companies lend against the face amount of the invoices
Funding is provided against the face amount of your invoices and not based on the financial strength of your company. Simply put, banks look at your financial statements and personal guarantee strength when making their loans and factoring companies look at the quality of your accounts receivable.
2) Factoring companies are more concerned with your customer’s credit
When making their lending decisions, factoring companies look to the financial strength of your customers and their payment history. A solid payment history and a verifiable invoice are two of the key things factoring companies look for when making their lending decisions.
What Exactly Is Factoring or Accounts Receivable or A/R Financing and How Can It Help You?
Factoring is a form of asset-based financing and is the process of selling commercial accounts receivables by a business in order to obtain immediate cash payment of the accounts before their actual due date.
Factoring differs from borrowing in that the accounts receivables are actually sold rather than merely offered as collateral.
The process called “factoring”, in the simplest terms, means Vision advances you up to 95% of the invoice amount immediately, and gives the remaining balance when your clients settle in full. Invoices can be submitted for factoring directly upon completion of work or product delivery. Revenue flows directly and instantly to you. In return, Vision receives a small fee at the end of the process. The approval time can be as little as 2 or 3 business days and you’re not locked into a long-term contract. Vision allows you the flexibility to factor only when you need it, and as often as you like. We base our approval decisions on your customers’ ability to pay, and not the credit of your growing business. Ask us about both invoice factoring and purchase order financing.
Improve Cash Flow Without Additional Debt
- Factoring is not a loan, so you’re not incurring any debt. The invoices are actually being purchased from you. Once advanced your initial 80-95%, The factor owns the rights to the invoice and collects directly from your customer. A simple notification is used in the initial stage of the process to inform your clients of a change of remittance.
- You won't be asked for any equity stake in your company. You maintain full command of your business.
- You won't be signed on to any long-term contracts. The agreements allow you the flexibility to factor what you want, when you want.
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Purchase Order Financing
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Please download, complete and email the following application to service@visionglobalcapital.com
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| INITIAL DOCS/ITEMS FOR PURCHASE ORDER AND CONTRACT FINANCING |
