Factoring
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Increased cash flowFactoring offers immediate cash access. Factoring is perfect for covering expenses, meeting payroll demands, and fueling growth. With factoring, you can effortlessly secure the funds needed to keep your operations thriving.
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Reduced riskFactoring can help businesses minimize the risk of customers not paying their bills. By leveraging factoring services, businesses can optimize their cash flow, reduce the risk of non-payment, and enhance overall financial stability.
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Improved creditFactoring can help businesses improve their credit scores. When a business factors its invoices, it is essentially borrowing money from the factor. This can help to improve the business’s creditworthiness and make it easier to obtain other forms of financing in the future.
What is Factoring
Factoring is a financial solution where a business sells its accounts receivable, or outstanding invoices, to a third party called a factor. The factor then collects the full amount of the invoices from the customers and remits the net amount to the business, minus a fee. This allows businesses to convert their unpaid invoices into immediate cash flow, providing them with the working capital they need to operate and grow. Factoring is a quick and easy way for businesses to access cash, helping them overcome cash flow challenges and seize new opportunities. By using TCCC, businesses can access cash immediately, without having to wait for customers to pay. Our experienced team understands the intricacies of factoring and can guide you through the process, providing tailored financing solutions to support your company’s growth and success.
How Invoice Factoring Works
When a business completes a job or delivers goods to another business, it sends an invoice for the agreed-upon amount, let’s say $1,000, with a payment term of 60 days. Instead of waiting for the full payment, the business chooses to work with a trusted factoring company like Third Coast Commercial Capital (TCCC). Upon partnering with TCCC, the business receives an immediate advance of 90% of the invoice amount, which in this case would be $900. TCCC provides this advance on the same day the invoice is submitted. This allows the business to access a significant portion of the funds without waiting for the customer’s payment. Once the customer pays the invoice in full, TCCC releases the remaining 10% ($100) to the business.
Factoring A Powerful Solution
Factoring is a type of financing in which a business sells its accounts receivable (invoices) to a factoring company. The factor then collects the full amount of the invoices from the customers and remits the net amount to the business, minus a fee. Factoring can be a quick and easy way for businesses to get access to cash. Invoice factoring offers a simple yet powerful solution to improve your cash flow. Instead of waiting weeks or months for payments, Third Coast Commercial Capital can advance you a significant portion of the invoice value right away.
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