Invoice Factoring Texas

This article is about invoice factoring together with its benefits and advance.

Local Companies

1st Commercial Credit
800 450 9653
300 E Main
El Paso, TX
Golden Funding Source
972-293-0115
445 E FM 1382 Suite 3-105
Cedar Hill, TX
Sterling Resource Funding Corp.
832-484-1700
3845 FM 1960 West, Suite 250
Houston, TX
Factor Funding Company
281-208-8100
P.O. Box 35481
Houston, TX
UC Factors
281-438-3877
5090 Richmond
Houston, TX
Lone Star Business Capital, Inc.
713-589-2516
PO Box 7567
The Woodlands, TX
Catamount Funding, Inc.
713.647.8577
11211 Katy Freeway, Ste. 604
Houston, TX
Premium Finance Holdings
(214) 739-0170
9400 N Central Expy
Dallas, TX
Dallas North Acceptance Corp
(972) 628-4650
4755 McEwen Rd
Dallas, TX
Bar C Finance
(830) 780-0006
218 E Calvert Ave
Karnes City, TX

Introduction to Factoring

Invoice factoring, (also called accounts receivable finance, or accounts receivable factoring) is a form of commercial finance whereby a business sells its accounts receivable (in the form of invoices) at a discount. Factoring is considered off balance sheet financing in that it is not a form of debt or a form of equity. Factoring is a financing option for young, under-capitalized businesses that have the profit margins to absorb the factor's fee. Factoring is a flexible form of loan, which advances money to a company as it issues new invoices. It is a widely used financial product that transacts over $70 billion of volume each year in the United States alone, and is one of the most popular forms of financing in Europe. Factoring is one of the oldest and most powerful cash flow and management tools available to businesses today. It is not a loan and will not show up as debt on your company’s balance sheet. It is designed for businesses that want to improve their cash flow by not waiting 30, 45, 60 days for a customer to pay.

Factoring Benefits

Factoring invoices gives you predictable cash flow. This increased cash flow allows you to take advantage of growth opportunities, early pay discounts, reduce debt or cover operating expenses. If you are concerned with your ability to meet payrolls because of unpredictable cash flow you are a candidate. If your business has seasonal peaks that create cash flow dilemmas, you are a candidate. Factoring is a very simple tool that provides you with predictable cash flow. Cash flow planning and control can become skewed due to uncertainty of payment dates. It creates the needed control over your cash flow that translates into greater production, sales and profitability.

Factoring Advance

Advanced funding is wired to your business bank account. This can involve a very substantial payment being made right at the start, with most factors paying 70% to 90% through initial advance of the invoice amount followed by a small additional payment, through reserve release, once they collect the invoice. Remember that the credit-worthiness of your customers will have an impact on the advance and discount rates coming from the factoring company. For example if the invoice's value is $1,000 an advance rate of 80% equals $800. The balance of the advance is called the "Reserve".

Conclusion

Factoring is a way to get immediate cash. Factoring is a long established and mainstream financing option for businesses. Invoice factoring is the time honored and increasingly utilized financial tool that speeds client cash flow and helps avoid the problems that slow-paying customers can create for fast-growing companies. It has become a financial tool used by growth oriented business to increase working capital. It is a fast, easy and flexible way to improve your cash flow and generate working capital for your company so you can achieve the success you are striving for.

About the Author:

Greg de Vries is the VP of Marketing for Business to Business Capital Corp – America’s Friendliest Factor. Please visit BTB Capital Corp at http://www.btbcapital.com to receive a no-cost, no-obligation proposal for factoring or contact us at info@btbcapital.com.






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Featured Local Company

1st Commercial Credit

Asset Based Lending and Factoring Services available for USA, Canadian and UK Customers.

800 450 9653
300 E Main
El Paso, TX
www.1stcommercialcredit.com

Factoring Credit Lines starting as low as 1.59%. (Monthly minimum Requirements) Asset Based Credit lines available.

Same day approvals for Factoring Receivables.

Industries: Medical, Staffing, Trucking, Construction, Distributors, Manufacturers and Export Trade Finance including Purchase Order Finance and Letters of Credit.

Locations in the USA, Canada and the UK. Export Trade Finance available in over 60 countries and 17 currencies.

USA and Canada 1 800 450 9653

United Kindom 0 800 404 9669

1st Commercial Credit UK, London
1st Commercial Credit - Canada, Toronto

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