Commercial Factoring for Invoices

For marketability, profit, and success.

Commercial factoring or commerce invoice factoring has some key advantages for small businesses. The benefits are especially worthwhile for companies that have few other options due to credit profile or growth stage.  

Commercial factoring is a lifeline when slow-paying invoices stifle cash flow and working capital. It is a financing option that can also be the first step in gaining low-interest financing from CIT, Wells Fargo, and other banking institutions.

Providing top invoice factoring for small business, FundThrough automates the invoice factoring process, so you have the working capital to grow your commercial company. 

What is Commercial Invoice Factoring?

When commercial businesses are strapped for cash and getting financing isn’t an option, commercial invoice factoring provides an advance on your unpaid accounts receivables.

Commercial factoring is especially helpful for businesses that can’t meet payroll, buy inventory, or pay vendors because of poor cash flow. It is also an option if you can’t qualify for a loan or line of credit because of your business’ credit or growth stage.

Commercial factoring gives your business fast funding, and reliable cash flow. It also gives you advances that keep pace with the growth you experience without the debt that comes with a loan. 

Who Uses Commercial Factoring?

Commercial factoring is for all types and sizes of businesses, including manufacturing, transportation and distribution companies, agriculture, the food industry, construction, green and eco-friendly organizations, and more. In short…any company that works with other businesses and submits invoices for work done can benefit from commercial factoring.

How Does Commercial Invoice Factoring Work?

Commercial business owners that submit invoices for payment can benefit from factoring with FundThrough. Transactions are straightforward and most businesses qualify.

  1. Deliver goods or services to your customers and clients.
  2. Choose which invoices from slow-paying clients you want to submit for factoring.
  3. FundThrough verifies the invoices and advances up to 100% of net commercial invoices in as little as one day.
  4. Once the invoices are paid in full by your customer, FundThrough turns around and pays you the remaining value, minus a fee.

Benefits of Commercial Finance Factoring

Commercial businesses depend on cash flow to keep the doors open. That’s why commercial finance factoring is so worthwhile.

  • Commercial factoring provides fast access to cash to businesses to eliminate waiting months for payment.
  • Invoice factoring is not a loan that you pay back with interest.
  • It doesn’t care about your credit or at what stage your business is at.
  • You can wipe off bad debt from your balance sheet.
  • You maintain the equity in your business.
  • Financing transactions are straightforward, rates are low, and funding is fast.
  • You have unlimited funding potential.
  • Factoring with FundThrough helps you maintain cash flow so you can grow your business. Financing transactions are straightforward, the cost of factoring is low, and funding is fast.
  • It helps businesses maintain strong customer and client relationships.
  • It is a practical way to improve and maintain cash flow with no payment delays.
  • No customer collections on your part.

What Kinds of Businesses can Benefit from Commercial Factoring?

If you provide goods or services and submit invoices for payment, you can benefit from commercial factoring. Just a few of the industries that can cash in on all of the positives of working with FundThrough are:

  • Commercial Waste 
  • Payroll & Financial products
  • Professional Service
  • Government clients
  • Trucking companies
  • Retail Service-based companies
  • Delivery Company
  • Product distributors
  • Energy
  • Real Estate Companies
  • Wholesale
  • Technology
  • Export Companies
  • Entertainment
  • Medical and Health Care
  • Security Guard Services
  • Emerging brands
  • and more…

Small businesses and midsize businesses can all benefit from factoring.

MapleX is an emerging brand in the Personal Care market offering a variety of Castile Soap fragrances. Early on, the company experienced a bottleneck in order fulfillment due to cash flow. Factoring late-paying invoices with FundThrough gave them the confidence to solve cash flow problems and cover immediate and future expenses.

maplex naturals logo

How Can Commercial Invoice Factoring Help Your Business?

Commercial receivable factoring can help you in a number of ways:

  • If your business is a start-up in a growth cycle, and you don’t have the years of credit history to get a traditional loan, invoice factoring can step in and provide access to the working capital you need today. It is a commercial financing option to cover your business expenses.
  • Factoring is not a loan. Your business isn’t locked into high monthly payments or long-term contracts. You won’t pay interest, FundThrough’s rates are low, and your credit is not impacted.
  • Having your invoices factored puts you in the best place to grow your business.
  • It allows businesses to manage dips in cash flow.
  • Addressing short-term finances lets your business concentrate on long-term goals and meet business expenses.

When is the Best Time to Use Commercial Factoring?

Deciding when you use commercial factoring depends on the needs of your business and receivable management. You may be experiencing problems with predictable cash flow so you’re unable to purchase new inventory for your manufacturing business. Maybe you’re strapped for cash and can’t make payroll, or you lack the extra capital necessary to grow your business. 

You may be experiencing high growth and simply can’t wait weeks or months for slow-paying customers to pay invoices, or you’re carrying high balances on the books. 

Factoring provides timely cash flow without adding to your overall debt. If you’ve been turned down for a bank loan, it can also give your business cash flow boost it needs to succeed.

Commercial invoice factoring is right for your business if you invoice customers for work completed but wait weeks or months to get paid. Perhaps you can’t grow because cash flow is slowed or working capital is depleted. Maybe you don’t want to take on new debt or can’t qualify for a loan.

Or, it’s a fair assumption that you simply don’t have the time or the energy to collect money from slow-paying customers. Generally, commercial factoring is best if your customers are other businesses. Contact FundThrough and get a quote today.

Commercial Factoring FAQs

Your questions answered.

Factoring can be a springboard for growth. The main advantage to most businesses is increased cash flow. Not even the largest companies can operate at a profit all the time. Negative cash flow or relying on your reserves can only last so long. Factoring provides immediate cash so you can stop treading water until your invoices are paid.

FundThrough offers very competitive rates. By offering two, easy, lightning-fast funding solutions, you get paid in 24 hours no matter how much you factor. There are no hidden fees and no charge to open an account.

The typical charge for Velocity Invoice Factoring at FundThrough is 6%. This option is best for invoices anywhere from $15,000 to $10 million dollars. If you choose to use Express Invoice Financing, 0.5% is added to each of the 12 weekly installments. This option is best for invoices anywhere from $500 to $15,000. 

FundThrough offers flexible repayment options such as skip-a-payment, lump sum payment, and early repayment to help waive fees on remaining payments, reducing your cost of factoring.

It’s possible to have more than one commercial factoring company, but why would you want to? Besides, the requirements of most factors include signing a contract/agreement outlining fees and best practices. One of the provisions of that contract might be that you can only work with one factor at one time.

That said, if your commercial company already has an agreement with another factor, FundThrough will still work with you. Just call to talk with one of our experts. 

Simple. Intuitive. Commercial Invoice Factoring.

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