Businesses might turn to invoice factoring for a variety of reasons, like when they’re struggling with cash flow and collecting invoices, or when they want to have the capital they need to expand their business. Thankfully, at Camel Financial we’ve helped many companies build a strong financial foundation through invoice factoring.

Below, we wanted to tell you some more about how an invoice factoring company can benefit you!

What is Factoring? What Types are Available?

Before diving into too much detail, it’s important you have a good understanding of what invoice factoring companies do and what options are available to you. In the simplest of terms, invoice factoring is when a company offers you cash for your outstanding receivables. This helps you avoid the 30-60 day lag of providing goods or services to clients and waiting to be paid. The creditworthiness of your customer base will also be taken into account to determine how much cash in hand you’ll receive.

Some companies require you to repay any factoring amount that they were unable to collect. This is known as recourse factoring. Non-recourse factoring, however, is when you would have no obligation to cover that balance.

Competitiveness of Pricing

For those looking for the best factoring prices, there is an industry-standard that factors fee rates between 1.20-3.5% for 30 days. So, it’s important if you’re being required to pay fees or are considering working with a recourse invoice factoring company to collect a few quotes.

Reputation & Years in Operation

Lastly, consider your invoice factoring company’s overall reputation. Do they have positive reviews? Are they willing to communicate with you directly? Also, do a bit of background research to determine how long they’ve been in business. The ones with decades under their belt often means that they’re reputable and honest.

Let us be your invoice factoring company!

If you’re in need of fast cash for your business, we’d be happy to help. Camel Financial also offers cash flow loans and other financing solutions. Contact us online today or call (949) 722-7717.