What Is Invoice Factoring?

Invoice factoring allows businesses in Virginia Beach, Norfolk, Chesapeake, Newport News, Hampton, Portsmouth, Suffolk, Yorktown, Williamsburg, Smithfield, Isle of Wight, Poquoson, Eastern Shore, and Hampton Roads to turn unpaid invoices into working capital.

Instead of waiting 30, 60, 90 days or longer to get paid by your customer, you are able to get working capital on an unpaid invoice. This allows you to use the funds you have already earned, but are trapped in these invoices.

In today’s fast –paced business environment, waiting two or three months for your money can be a show stopper.  Cash flow gaps stifle many small businesses growth.

Smart business owners know that there are financial solutions at their disposal, and one of those is invoice factoring.

We also provide other funding solutions like a business line of credit, merchant cash advance, cash flow loans, term loans, equipment financing, and equipment loans.

With invoice factoring, a business sells its accounts receivables to a factoring company in order to gain quicker access to those funds.  Instead of waiting days, weeks, or months to get paid, the business gets working capital on those outstanding invoices quickly, which can mean the difference between staying in business or going out of business.

If 24-hour invoice factoring approvals with a streamlined funding process is what you need for your business now, All Merchant Funding is for you.  All we need is completed application (APPLY ONLINE HERE) and the three most recent business bank statements to get an offer!

A small business owner in Virginia Beach, Norfolk, Chesapeake, Newport News, Hampton, Portsmouth, Suffolk, Yorktown, Williamsburg, Smithfield, Isle of Wight, Poquoson, Eastern Shore, and Hampton Roads can use the funds for day-to-day expenses, to cover payroll, purchase supplies, repair a piece of equipment, and more.

Those funds can also come in handy for an unexpected opportunity or to promote growth.

How Invoice Factoring Works

There are usually three parties involved in an invoice financing transaction:

  • The business that issued the invoice
  • Their customer, or account debtor, who owes payment on an invoice
  • The financing company, also known as the “factor,” that would offer funds on the unpaid invoice

After a company delivers the product or service to their customer, they issue an invoice. The company then “sells” the invoice to the factor, such as All Merchant Funding.  In return, the company receives working capital from the factoring company, typically between 80% to 95% of the value of the invoice.

After the debtor pays the outstanding invoice, the business receives a rebate for the remainder of the funds, minus a small fee that is based on the term and value of the invoice.

When all is said and done, the small business has smartly created strong cash flow that allows it to move forward.

If you are looking for a local company that does invoice factoring as well as a honest partner to help grow your business, please contact us at (800) 628-1001 or funding@allmerchantfunding.com.  Thank you!

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About Our Factoring Company
Our company is located in Chesapeake and serves businesses in Virginia Beach, Norfolk, Chesapeake, Newport News, Hampton, Portsmouth, Suffolk, Yorktown, Williamsburg, Smithfield, Isle of Wight, Poquoson, and the Eastern Shore.  Clients count on us for many types of financing like invoice factoring, equipment financing, equipment loans, small business loans, business line of credit, merchant cash advance, cash flow loans, and term loans. If 24-hour approvals with a streamlined funding process is what you need to grow your business, All Merchant Funding is for you.