How our Invoice Factoring Works
Get Paid When You Bill You Customers
Factoring / Accounts Receivable Finance is a well established form of funding for businesses and as a result there are well established straightforward steps to the process.
- The client submits a schedule of the invoices listing the accounts receivables to be factored along with the invoices and supporting documentation. This is done at the same time as the Client sends the invoice to their Customer on completion/delivery of the work.
- The Factor will review the documentation, spot confirm the receivable and if satisfactory advance the Client typically 80-85% of the face value of the invoice the next business day.
- The Factor will professionally follow up with the Customer to gain prompt payment.
- When the receivable is paid by the Customer to the Factor’s lockbox the balance of the face value of the invoice is released to the Client less the Factor’s fees.
Factoring enables you to get paid when you bill your customers, regardless of when your customer actually pays you. It takes away the difficulties of chasing money and the worry of not knowing when you might get paid. Our factoring service offers a fast, straightforward way to improve your cashflow and with Republic Business Credit, you get the advantage of receivables management specialists working for your business too.
Benefits of Factoring
- Meet payroll commitments.
- Keep current with tax obligations – we are experienced at assisting work with tax authorities in putting in payment plans for arrears where needed.
- Meet peak seasonal demands.
- Take advantage of purchase settlement discounts.
- No need for you to offer settlement discounts on your receivables.
- Be able to get standard credit terms from vendors and focus on negotiating better rates.
- Hire new employees.
- Release the cash-flow from your accounts receivables.
- Buy out partners.
- Support an acquisition of a competitor.
- Start a new line of business.
- Fund research and development.