Invoice Factoring Solutions

Once you choose a factoring company that meets your business needs, the process of factoring is simple.

1. When you are ready to fund, send your invoices to the factoring company.
2. The factoring company advances you a percentage of the invoice value.
3. Your customer pays the invoice to the factoring company on the agreed-upon terms.
4. The factoring company pays you the remaining invoice amount less a fee for the service.

There are three common factoring rate types; flat, tiered, and prime plus. Factoring rates are calculated based on several variables including monthly invoicing volume, industry, and customer payment trends.

No! With Scale Funding, you can factor some or all of your customers. For the customers you choose to factor, all invoices should be sent to the factoring company.

Scale Funding offers factoring to companies providing business-to-business sales and services. You must bill your customers on net terms and invoice at least $50,000 a month on average.

It is essential to review the terms before signing on with an invoice factoring company. As a customer, flexible terms are ideal.

Most factoring companies only offer a one-year contract agreement. At Scale Funding, we give you options. Our contracts are month-to-month, so you are not locked into a long term agreement. There is also the option of long-term contracts, which can include price breaks or flexible rates.

It first begins with an agreement between a business and a factoring company. The business operates as usual, and once the work is complete, creates an invoice.

Instead of sending the invoice to its customer, the invoice is submitted to the factoring company.

The factoring company purchases the invoice and directly deposits the advance into the business’s bank account. In most cases, the advance is around 90 percent. Once the customer pays the invoice, the invoice factoring company pays the business the remaining amount of the invoice, less a fee.