Presented by Daniel Toriola
It has been proven that good looking invoices and quotes encourage customers to pay quickly. Professional
looking documents can also increase the number of returning customers. Can you honestly say that your
invoices truly represent your company?
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Can Invoice Factoring Benefit Your Business?
By Robert Michael
Are you a business owner? Does your business produce invoices? Are you looking for a way to
increase cash flow every month? If you have not considered invoice factoring, it’s time to take a look.
Invoice factoring means you sell your invoices to an invoice factoring company, your “factor.” The
invoice is sold at a discount, generally about 3 to 5 percent. The factor pays you, and your customers
pay them. That means you no longer have to wait to collect from your clients. No more slow cash flow!
You can decide which invoices to factor. You do not have to factor every invoice. Points to consider
when deciding which invoices to factor include client payment history and credit with your business.
Factoring your invoices increases your working capitol and can improve your business’ credit rating.
The first step in the factoring process is notifying your invoice factor that an invoice has been
generated. Usually, you can send the information to the factor using e-mail, and notify them of the
amount of the invoice, and which customer the invoice is from.
Secondly, the invoice factoring company calls or sends a letter to your customer to confirm the invoice.
You and your invoice factor will generally agree on the most appropriate method to confirm the
invoices. Factors will usually appear to the customer to be your billing department or processor. That
way, your customers do not know that you have sold their invoice to a third party.
Many invoice factoring companies stop confirming every invoice