More and more small to medium size businesses are discovering invoice factoring and realizing the value it provides to their company. So why are these companies raving about this easy, cost-effective form of alternative financing, and how are they using it to help meet (and sometimes exceed) their business goals? It’s simple. Rather than send your invoices to your customers who may take 30, 60 or even 90 days to pay, factoring companies buy your invoices from you for a nominal fee and you get paid fast-usually by the next day. The factoring company then forwards those invoices to your customer and professionally handles the collections. Companies who use invoice factoring rely on the professional collection services that are part of the process, allowing them to save money and focus on other parts of their business. It’s smart. There are several reasons why smart companies choose factoring as a financial option for their business.

1. Got a question? Need some advice? Give us a ring. 800.705.1500
eCapital.com
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Invoice factoring
works like this:
1. You send your accounts
receivable, or invoices, to
your factoring company
2. The factoring company
pays the you up to 90% of
that invoice in 24 hours,
while keeping the rest in a
reserve account
3. Your factoring company
professionally handles the
collection of your invoices
4. You receive the
remaining invoice amount
that was in the reserve
account, minus a small fee
More and more small to medium size businesses are discovering invoice
factoring and realizing the value it provides to their company. So why are
these companies raving about this easy, cost-effective form of alternative
financing, and how are they using it to help meet (and sometimes exceed)
their business goals?
It’s simple.
Rather than send your invoices to your customers who may take 30, 60 or
even 90 days to pay, factoring companies buy your invoices from you for
a nominal fee and you get paid fast-usually by the next day. The factoring
company then forwards those invoices to your customer and professionally
handles the collections. Companies who use invoice factoring rely on the
professional collection services that are part of the process, allowing them
to save money and focus on other parts of their business.
It’s smart.
There are several reasons why smart companies choose factoring as a
financial option for their business. Here are 6 reasons why an alternative
financing option like invoice factoring might be right for your business:
1 Factoring does not create debt. Let’s be clear: Factoring is not a
loan. This is money you already earned. You simply pay a small fee
to access it sooner.
2 Factoring takes the stress out of invoicing. Chasing down
payments from a customer is a total drag. A factoring company will
collect on behalf of you, offloading a tedious, time-consuming
process.
3 Factoring opens doors. If you want to expand your business, you
need a healthy cash flow. Factoring puts money in your pocket so
your company can reach its goals.
4 Factoring is flexible. Some invoice factoring companies allow you
to factor only the customers you choose—giving you added
flexibility. Smart companies utilize factoring for specific customers.
Have a customer who pays you in 15 days? Luck you! There’s no
need to factor them.
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6 reasons savvy business owners are
TURNING TO INVOICE FACTORING
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Factoring (fak-ter-ing):
The sale of a company’s
accounts receivable invoices
to a factor to obtain working
capital; this is also known as
receivables factoring, invoice
factoring, bill factoring,
accounts receivable factoring,
accounts receivable funding
and invoice discounting. It
is an popular method of
financing used worldwide
to help all types and size of
companies.

2. Got a question? Need some advice? Give us a ring. 800.705.1500
eCapital.com
Who is eCapital
anyway? We’re in the
business of buying your
accounts receivable to give
you fast cash and financial
freedom.
Connect with us and
find out more.
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“I needed
quicker access
to cash for
my company,
so I looked
into invoice
factoring. It
turned out to
be the perfect
solution for my
company,”
says Bill.
5 Factoring is cost-effective. Internal back office support can be
expensive. Factoring typically costs just a few cents on the dollar.
Compared to the expense of hiring an employee to manage your
accounts receivable, factoring makes good business sense.
6 Factoring grows with your business. You won’t outgrow factoring
because most factoring companies don’t set maximums. Even as the
number and size of your invoices grow, you can keep turning them
into cash to fuel continued expansion.
It’s effective.
Bill W., a business owner in Texas, understands the value of factoring and
utilizes it as part of his comany’s financial strategy. When he first started
his company a few years ago, he was looking at several different financial
options, and realized that factoring was an ideal way to improve the cash
flow for his young, yet growing company.
“I needed quicker access to cash for my company, so I looked into invoice
factoring. It turned out to be the perfect solution for my company,” says Bill.
He also says that his factoring experience has exceeded his expectations.
Since he started factoring his invoices three years ago, his company has
tripled its revenue.
If you’re a business owner, you know how tough it can be to lack the cash
you need to keep your business running. A smart alternative financing
option, invoice factoring can provide quick access to crucial working capital
without the hassles of dealing with bank-related loans.
If you have questions about whether invoice factoring is a good fit for
your company, chat with one of our friendly factoring consultants at
800.705.1500 to learn more about factoring and how it can meet your
business’ financial needs.
6 reasons savvy business owners are
TURNING TO INVOICE FACTORING