Author: Marc J. Marin
From Invoicing to Collection
The invoice factoring process is simple
We will purchase your valid invoices for completed work and provide you with an immediate cash advance against those invoices. When your customer pays you will receive the balance minus our fees.
Yes, with the exception that you list a different address to which your customer sends their payment.
No. One of the more attractive benefits of factoring is you can pick and choose which invoices you factor. This allows you to control the costs of factoring and maintain the cash flow you desire. For example, you might choose to factor a particularly large job to get access to that cash quickly while letting several smaller ones pay in a normal cycle.
While there are no minimums or maximums, you can lower your total costs with a higher volume of factoring.
A number of items will determine the amount you will receive, but it will range from 75 percent to 95 percent of the total invoice. Some of the things determining the amount include your customer terms, past experience, industry, and perceived risk factors.
As with the last question, your invoice factoring rates will vary based on a number of variables. However, you can expect a total monthly fee of 1 percent to 3 percent. Many companies actually build this cost into their bids or prices.
You will receive your funds by bank wire straight into your designated account. Your funding schedule will depend on your particular arrangement, but funds can be wired within 24 hours or less of invoice submission and approval.
When your customer pays the invoice, you will automatically receive any balance after the factoring fees are deducted. Depending on your specific agreement, you may have an account reserve that serves as a totally amount held and receive more of less of the balance on the invoice.
In addition to helping greatly with cash flow, many companies find this one of the biggest advantages of factoring invoices. Decisions to factor are based on the credit rating of the customer, not your company. One important function of most factors is to help you evaluate that customer’s credit before you start work so you better understand the risk they represent.
Once your application is submitted, which usually only takes an hour or so, you can be approved within 24 hours. Once approved, your first funding could be within 24 to 72 hours.
Yes, we do! As a matter of fact our typical clients have one or more of the following characteristics:
If your business serves B2B customers you can access our factoring services . We have significant experience in a wide variety of industries included, but not limited to, the following sectors:
We are all about transparency. Here you can also find detailed information to learn to compare factoring proposals from factoring companies.
If you want to find valuable reasons to choose Gateway as your factoring partner you are invited to watch the video on the right about our confidential factoring services or visit this complete page detailing the exclusive benefits our full service factor provides.
Author: Marc J. Marin