What is Invoice Factoring?
Invoice factoring is a type of financing used by businesses in need of working capital. A business will sell its open receivables (invoices) to a factoring company to get immediate cash. Invoice factoring is a fast, simple and debt-free financing solution for companies that cannot wait weeks or months for payments from their customers.
How Invoice Factoring Works
Invoice factoring is a simple, straightforward process. A company using invoice factoring will provide work, service, or product to their customers. When it’s time to invoice the customer, the company will send the invoice to a factoring company, such as TCI Business Capital. The factoring company will advance the company a percentage of the value of the invoice. The invoice is forwarded onto the customer, who then pays it in their normal terms. Once the invoice is paid to the factoring company, the remaining balance of the invoice is rebated to the company.
What Does Invoice Factoring Cost?
Because invoice factoring is not a loan, no interest is charged. Instead of paying interest, the cost of factoring, known as the factoring fee, is based upon how long it takes your customer to pay the invoice.
At TCI Business Capital, factoring fees are based on a number of variables. These include, the monthly dollar volume of invoices factored, credit and payment history of your customers and expected payment terms.
Because no two companies are the same, TCI Business Capital customizes factoring programs to meet the specific needs of each customer. These factoring programs provide clients a low-cost, long-term value in financing, along with superior customer service.
What are the Benefits of Invoice Factoring?
Companies using invoice factoring will benefit is a number of ways. First, because factoring is based up the customer’s credit and payment history, companies that are not eligible for traditional lending easily qualify for factoring.
Second, the immediate access to cash enables companies to meet payroll, purchase materials, settle payables and grow. With cash on hand, companies eliminate the stress and worry over payroll, as well as take advantage of savings on their purchases and expenses.
Finally, factoring companies like TCI Business Capital provide value-added services such as invoice support, collection services, online reporting and more. These services will free up time and resources, so company owners can serve their customers and grow their business.
Invoice Factoring With TCI Business Capital
Since 1994, companies from a range of industries have chosen TCI Business Capital for their invoice factoring services. Our industry knowledge and reputation for exceptional factoring services have made us a leader in the factoring industry.
TCI Business Capital offers invoice factoring programs to meet the needs of companies across North America. Our factoring programs feature:
- Free Quotes & Approvals
- No Setup Fees
- Flexible Funding Terms
- Same-day Advances
- Low Factoring Fees
- Lines from $50K – $20MM
Invoice Factoring For Your Company
Invoice Factoring is an excellent source of financing for many companies. TCI Business Capital serves companies in a wide variety of industries. Invoice factoring provides the cash these companies use to serve their customers and build stronger, more profitable companies. The industries TCI Business Capital clients are part of include:
- IT – Technology
- Light Industrial
- And others
- Site Preparation
- Drilling Contractors
- Frac Sand Hauling
- Water Haulers
- Roustabout Services
- Well Servicing
- And Others
- Contract Carriers
- Freight Brokers
- Heavy Haulers
- Refrigerated Carriers
- Tanker Fleets
- And many more
- Data Management
- IT Services
- Software Development
- Technology Solutions Providers
- And more
- Pipeline Construction
- Right of Way Clearing
- Fabrication & Welding
- Trenching Services
- Underground Utilities Contractors
- Plus more
- Engineering & Procurement
- Site Development services
- Construction Sub-contractors
- Operations & Maintenance
- And many more
- Federal, State, Provincial and Local
- Professional Services
- Pass-through Transactions
- And more
- Antenna Installation & Repair
- Tower & Outside Plant Construction
- Fiber Optic and Structured Cabling Installations
- Network Engineering
- Cell Tower Maintenance
- Plus many more
- Concrete Contractors
- Construction Management
- Crane & Aerial Lift Operators
- Grading & Excavating
- Horizontal Directional Drilling
- Utility Locators
- And others
- Distribution & Wholesale
- Plus many more
Getting Set up for Invoice Factoring is easy as 1-2-3
Because each company’s situation is different, TCI Business Capital has factoring programs tailored to fit the unique needs of each client. We work with clients in many different industries, so we can customize a factoring program to meet the specific needs of your company. It’s as simple as 1-2-3.
Step 1 – Get a Quote
The initial step in securing a factoring line is to speak with a TCI Business Capital representative. We’ll discuss your cash situation and needs, and we’ll offer a free, no-obligation quote and approval for a factoring line. Our simple and straightforward underwriting guidelines allow most customers to receive written approvals in 15 minutes or less. All factoring approvals are customized for the specific needs of the client. We’ll work to make certain the factoring line meets your requirements.
Step 2 – Submit Invoices and Related Documents
Once a factoring line is agreed upon, we’ll schedule your first funding. We can accommodate most schedules and offer an expedited service for those in need of immediate cash. During the setup process, we’ll walk you through the agreement and discuss your invoices and any related materials.
Step 3 – Get Cash for Your Invoices
When the setup process is complete, we fund you via ACH direct deposit or a wire transfer into your bank account. From this point forward, each time we receive your invoices, we’ll process and fund you the same day the invoices are received.