How It Works

The process is rather simple!

When a business like yours sells a product or service to a customer, it creates an invoice. Typically, an invoice itemizes the units sold, price and terms of the sale. The invoice can either serve asa receipt if it acknowledges that payment has been received or as a bill if payment is due.

Most business-to-business customers that you work with will want to purchase your product on credit terms. That means you must allow your customer to pay their invoice in 30 to 60 days. That outstanding invoice is called an account receivable. Instead of waiting to collect payment, a business may elect to establish a line of credit against the invoice to an accounts receivable financing and invoice factoring company and receive an immediate cash advance. An experienced Factoring Consultant can help you get started!

Receive Immediate Cash!

We can provide immediate cash against the value of your outstanding invoices. As you issue an invoice, we can release funds up to 90% of the value of that invoice, usually within 24 hours. The remaining 10% is paid to you, less a small factoring fee, once they have received payment from your customer.

It’s fast, simple and worry-free!

  • No Financial Statements, Tax Returns or Minimum Credit Score Required
  • No Minimum Volumes, Hidden Fees or Teaser Rates
  • No Additional Debt for Your Business
  • Easy Application for Fast Funding
  • Rates that Begin at 1.0%

How Invoice Financing Works

Unlike many traditional lending options, accounts receivable financing looks at the whole picture — the quality of your accounts receivable, the number of invoices you want to fund, and your potential for sustained growth. Capital Partners’ factoring program allows you to determine the amount of customers you would like to receive invoice funding on; therefore, you essentially are in control of your own funds. You can simply use these funds to purchase new inventory, make improvements to existing equipment, buy new equipment, meet payroll, or pay bills, to name a few.

Let Us Help You Grow Your Business

How invoice factoring works: We help most business-to-business companies, big or small, and the benefits from invoice factoring outweigh the costs associated with it. Since banks are not lending, factoring and invoice financing has become a popular source of financing that grows with your sales and gives you increased cash flow and continuous cash for your business, all with no incurred debt. The growth of your business will result in immediate cash with invoice factoring. This is because invoice financing allows you to offer your customers safe and reliable credit, which makes it much easier to buy your products.
We look at the quality of your receivables and your potential for sustained growth, not your assets and net worth. With accounts receivable factoring, you don’t have to give up equity, create new debt or incur a loan payment. Instead, you eliminate long billing cycles and get accelerated cash flow to grow your business.

How Does Invoice Financing Help Businesses Grow?

How invoice financing works is simple: Accounts receivable factoring or invoice financing is a way to fill the gap between when a company invoices its customers and when that company receives payment for its services. Capital Partners helps you manage your credit, account receivables and invoices by providing you with credit management and control, plus collection services for all your outstanding debts. We would become the Outsourced Billing, Back-end AR and Credit Department for our clients, providing basic credit, risk and collection services as part of our value-added services — AT NO EXTRA CHARGE!

Here’s an Example of How Invoice Financing Works:

A potato chip company has purchased $100,000 worth of individual serving bags from Jill’s Bag Company (your company). The potato chip company chooses to buy from Jill’s, in part, because Jill allows 60 days within which the company can pay for the bags ordered.

  • Jill ships the bags and issues an invoice.
  • An accounts receivable factoring program is already in place with Jill’s Bag Company.
  • Jill sends the original invoice and shipping and receiving document to the invoice financing company for invoice factoring.
  • The invoice financing company verifies shipping, receipt, and that there are no merchandise problems.
  • Within 24–48 hours, Jill gets up 80% to 90% of the face amount, or $90,000.
  • The invoice financing company holds the 10% balance in a reserve, or escrow, account.
  • When the invoice is paid by the potato chip company directly to the factoring company, Jill receives the balance less the invoice factoring fee.

Summary: A factoring fee for an invoice is typically from 1% to 5%. The reserve is refunded to the client when the invoice is paid.