Use your invoices to accelerate growth!
How much are you looking for?
$25,000 – $5,000,000
6% – 18%
24 – 48 hours
What is Invoice Financing?
Invoice Financing is a great way to accelerate cashflow by getting paid on your outstanding invoices today, rather than waiting 30, 60, or 90 days to be paid. Invoice Financing acts like a Line of Credit, when your invoices are paid, your balance goes down, when you create new invoices, you can draw more money. The purpose of Invoice Financing is to bridge the gap between your ACCOUNTS PAYABLE AND ACCOUNTS RECEIVABLE, which not only helps with day to day expenses, but helps you take on additional customers and grow your business.
There are various different terms and fees that come with Invoice Financing, and all of this is determined by the strength and credit of the business, but most importantly, the strength and credit of its customers. As an example, if a food vendor sells their goods to a restaurant that recently opened, the quality of those invoices wouldn’t be considered strong. If that same food vendor sells to Walmart and they have been for 2 years, the quality of that invoice would be very strong. The first example would result in higher rates and less competitive terms where the second example would have Invoice Financing companies competing for the business!
What can a business line of credit be used for?
Day to day working capital
Business growth and expansion
Bridging cashflow gaps between A/R and A/P
Slow paying customers
Hiring new employees
What are the benefits of invoice financing?
Get paid now on invoices instead of waiting 30, 60, or 90 days
Low cost, secured financing
No interest or principal payments
As you bill more, you can finance more of your receivables
Eliminate cashflow gaps
What are the best industries for Invoice Financing?
In order to qualify for Invoice Financing a business must be in an industry that sells to other businesses, or a b2b industry. The reason for this is because b2b industries invoice their customers and sell on terms, while b2c industries collect payment at the point of sale (POS). The most common and best industries for Invoice Financing are; transportation and logistics, wholesale and distribution, temporary staffing, and manufacturing.
Transportation and Trucking
IT and Technology
How to apply for Invoice Financing?
The application for invoice processing is simple, but the larger the amount that’s needed, the more paperwork that a lender wants to see. The process can take anywhere from two to thirty days and is usually dependent on how prepared a business owner is when they apply and what type of existing debt there is.
Speak with a SMB Lending Expert to prequalify for a invoice financing. SMB Compass’s simple and secure online application can be completed in a matter of minutes, with no obligations and no impact on your personal credit!
Once your invoice financing application is complete we will review the rates, terms, and any questions you have about your loan approval. We will only move forward when all of your questions are answered!
Closed and Funded
Once you accept your approval and provide closing documents we will review your terms again to make sure that all your questions are answered. Your loan will then be closed and funded within 24 hours!
Invoice Financing Case Study
One of our clients manufactures leather products for big box retailers such as Macy’s, Target, and JC Penny. The biggest challenge that they’ve always had is the extended payment terms they needed to accept in order to sell to big retailers. The payment terms were always between 45 to 90 days which caused a cashflow gap for the company, ultimately restricting their growth. When an order is placed they would have to lay out capital for materials and labor and after shipping the product with 45-90 payment terms, the total cash outlay would be as long as 110 days. By utilizing invoice financing they are now being paid within 24 hours of invoicing which cuts the cash outlay to 2 weeks. They are now able to take on more orders and grow the business with an invoice financing facility that has no limit!
What Our Clients Are Saying!
Interested in learning about your financing options?
Speak with a lending expert today!
Interested in learning about your financing options? Speak with a lending expert today!