Small Business Invoice Factoring
Invoice Factoring allows you to convert your unpaid customer invoices to immediate cash advances.
What is Invoice Factoring?
Invoice factoring, also known as accounts receivable factoring, is a form of small business financing where a business sells its invoices to a factoring company in exchange for upfront funding. When the invoice amount is paid by the customer, the remaining balance is paid to the business owner minus a fee.
Invoice factoring allows you to receive the working capital you need to maintain operations and plan for the future, but without taking on the periodic fixed payments associated with a term loan. If slow-paying clients are stalling your ability to pay bills or meet payroll, invest in technology and equipment or hire more staffing, invoice factoring can help you bolster cash flow by liquidating your outstanding accounts receivable to meet your business needs.
Invoices
Small business owners sell outstanding invoices to a factoring service (the factor) at a discounted rate of 1-3%.
Collections
The factoring service then proceeds to collect all payments directly from the clients of the small business.
Imbursement
The factoring service sends the remaining balance to the business, minus any fees, which is typically an agreed-upon percentage.
Fast Financing For
Your Business
Business term loans allow borrowers to pursue large-scale growth strategies while paying for the initiative over the life of the loan. Whether you are looking to tackle the next part of your business plan, open a new location, purchase/rent new equipment, expand into new markets, grow your team, or launch a new product, term loans can help you reach your next phase of growth.
Longer term loans are best for planned business expansion and growth goals. Similar to buying a house or getting a college education, many business initiatives take time to gain a return on investment. The lower monthly repayment amounts of long-term loans can give your business the margin it needs to maintain positive cash flow.
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No Upfront Costs
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No Collateral Requirements
Qualifying Criteria
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550+ credit score
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6+ months in business
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$10,000+ average monthly bank deposits
Why Choose Us?
At Alpha Financial Business Group, we truly value your business. Your success is most important to us, so we’ll never over-leverage your business by offering you more funding than you can handle. Our simple application and quick approval process makes it easy for you to get the working capital your business needs, and our experienced funding consultants will walk with you every step of the way.