SMALL BUSINESS FUNDING PROGRAMS
What Exactly Is Factoring or Account 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.
Purchase Order Financing
Unlike factoring which accelerates the cash from your invoices, P/O funding or purchase order financing gives you the ability to have goods available for your clients from your sources before an invoice is generated.
If you are a product importer, jobber, wholesaler, product flipper or distributor, and need capital to deliver a large purchase order, then purchase order funding can be a solution to fuel your business with the cash you need to deliver your orders and grow your business.
Improve Cash Flow Without Additional Debt
What Exactly Is Factoring or Account 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.
Purchase Order Financing
Unlike factoring which accelerates the cash from your invoices, P/O funding or purchase order financing gives you the ability to have goods available for your clients from your sources before an invoice is generated.
If you are a product importer, jobber, wholesaler, product flipper or distributor, and need capital to deliver a large purchase order, then purchase order funding can be a solution to fuel your business with the cash you need to deliver your orders and grow your business.
Improve Cash Flow Without Additional Debt
- Factoring is not a loan, so you’re not incurring any debt. We’re actually purchasing the invoices from you. Once we advance your initial 80-95%, Vision 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.
- We ask for no equity stake in your company. You maintain full command of your business.
- Vision does not sign you on to any long-term contracts. Our agreements allow you the flexibility to factor what you want, when you want.
