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Who Is the Ideal Client for Invoice Factoring?

We are often asked about how our programs work and who is an ideal customer for us. Invoice factoring has different qualification criteria than a bank loan would have. This means that businesses that do not qualify for bank financing could still qualify for factoring. Here are some things that make a business an ideal client for factoring with Eagle.

Minimum Requirements for Factoring

So, what are some minimum requirements for being an ideal client for factoring with Eagle? The answer is that we can help any business selling to other businesses on credit terms. If a business has open accounts receivable with cash flow tied up in open A/R, we can help. There is no minimum time in business requirement. We do not require a high credit score. We evaluate the credit worthiness of your customers, and a business simply needs to be actively trading. Any business sector can be eligible for factoring. We can release the funds tied up in their open invoices.

qualifications invoice factoring

How Does Factoring Benefit Small Businesses?

We provide advanced payments, so they don’t have to wait to get paid by their end customer once they’ve completed a sale. This means a business that sells invoices to a factoring company has better cash flow. Then, you can take the cash on hand you now have and invest back into your small business growth. We see many of our clients grow their operations, simply because they can afford to make more sales without the waiting period of selling on credit terms.

what is invoice factoring

Why Refer a Client to Eagle for Factoring Services?

Some of the benefits of referring customers to us are quite simple. We’re not a bank. We’re not trying to be a bank. However, we work with banks and other financial institutions to help improve the credit worthiness of their customers. We enhance the cash flow of their customers, so they can grow their banking facilities.

infographic on how to get a bank loan