In this video, you will learn about invoice funding. Invoice funding and factoring have become very common business practices. There are different types of businesses you can sell invoices to.
Invoice factoring and invoice financing are used interchangeably, but they are not the same thing. If there are companies that have outstanding invoices, you can sell these and get cash upfront. The business can get the cash within a few days. Invoice factoring companies will purchase your outstanding receivables. Any business that has outstanding receivables can benefit from invoice factoring. Large invoices are easier to ger factored. These businesses might not be likely to give you money if the invoice is not going to be paid. Invoice factoring companies make their money by taking a processing fee. Once the person pays the invoice, the company will give you the rest of the invoice. The invoicing company is going to hold on to some percentage of the money for collateral. It is okay if you have bad credit. Invoice financing is going to lend you money based on your outstanding receivables with an interest rate. Keep reading if you are interested in learning more.