Invoice factoring can be useful in growing your business quickly—but what exactly is it, and how do you approach it the right way? As you continue your search for a factoring service in Kennesaw, GA, here’s what you need to know.
Finding a Company
It starts with finding a reliable factoring company that you want to work with. The right company will be able to interpret, understand, and accommodate your business’ financial needs and if necessary tailor their factoring services to your requirements. They should be able to help you strategize your approach and make you feel secure about choosing them for their factoring services.
Setting Up an Account
The set-up process with your chosen factoring company should be a pretty painless process. You will want to review the proposed contract with them and independently, as well as any other legal documents attached to the contracts. Once you sign these contracts, the account should only take a few days to be effectively established so that you can start getting access to the funds to finance your business.
Getting Your Money
There’s a certain process to getting funding through invoice factoring. Factoring companies usually ask you to notify them of the invoices you want funded on what’s called a schedule of accounts. This schedule of accounts is essentially a list of invoices to sell along with any other required paperwork such as proofs of delivery or purchase orders. Once the Factoring company receives this schedule, they should be able to pay you on your invoices within 24 hours or sometimes less. You should also be able to speak with an account representative if you have questions during the process as well as checking progress via an online link.
Getting the Rebate
This is what completes a transaction when your customer pays the outstanding invoices to the Factoring company. A factoring rebate is typically between 5-30% of your total invoice, and that percentage depends on the size of the cash advance you began with. Also, the method and rebate amount are partially dependent upon the factoring company you choose and the rates that they established within your contract. Once the rebates have been paid, the transaction is complete but of course you can continue to send new invoices for funding to repeat the process during the lifetime of your factoring agreement.
Factoring service in Kennesaw, GA, and elsewhere can be incredibly beneficial to business owners. Reach out to a factoring service to learn more.