Invoice Factoring
Invoice factoring is a savvy financing strategy where you sell your unpaid invoices to a third party at a discount, receiving immediate cash in return. This quick cash boost can help small businesses manage cash flow hiccups and cover short-term expenses, keeping operations running smoothly without the wait.
How Invoice Factoring Works
Invoice factoring provides you access to funds without taking out a loan. With Reid Capital's accounts receivable financing, you can turn your unpaid invoices into working capital in as little as one business day.
We purchase your outstanding invoices at a discount and advance you 70-90% of their value immediately, up to $100,000.
Choose to factor in bulk for your entire sales ledger or select individual or small bundles of invoices.
We handle the collection process, ensuring your customer relationships remain strong. Once your client pays, we send you the remaining invoice value, minus our fee.
With terms ranging from 30 to 90 days, Reid Capital makes it easy and fast to get the cash you need to keep your business thriving. Trust us to collect on your invoices professionally and efficiently
Invoice Factoring Rates
Our rates are influenced by the difference between the invoice value and our purchase price, alongside your business’s and client’s financial health and risk levels. Typically, fees range from 1-5% of the total invoice value for every 30 days it remains unpaid, ensuring you know what to expect.
Using Invoice Factoring
Factoring could be your secret weapon against cash flow issues. If you're a small business owner dealing with late payments and tight budgets, this financial tool might be just what you need. Ideal for industries like manufacturing, wholesale, and transportation, it’s also a lifeline for startups and SMEs struggling to secure traditional loans due to limited credit history. Imagine maintaining smooth operations and never worrying about delayed payments again. Factoring makes it possible!
Invoice Factoring is ideal for
Ensuring Payroll
During Lean Months
Building Your
Dream Team
Maximizing Impact with
Smart Marketing Investments
Managing Rent
and Essential Bills
Speeding Up Cash Flow
from Outstanding Invoices
Boosting Margins with
Strategic Inventory Purchases
Securing Materials for
Upcoming Projects
Upgrading with
Cutting-Edge Equipment
How to Get Started with Invoice Factoring
Apply
Fill out our form or get in touch with us to schedule a time to talk with a member of our staff.
Connect
Gather and share key documents, like your latest statutory financial statement (e.g., tax returns), business forecasts, and tax clearance certificate. You'll also need to share with us 3 months of bank statements.
Get Funded
Once your funding eligibility is approved, we will help you choose the best option for your business and you'll have access to capital within 24 hours .
How Invoice Factoring Strengthens Your Company's Future
A ready access to instant cash is something many small businesses desire. This can help them fund operations, pay suppliers, invest in new equipment, or expand according to their growth. The ability to convert unpaid invoices into cash improves financial position, increases revenue, and boosts profitability.
Invoice factoring is ideal for small businesses that struggle to obtain traditional bank loans or lines of credit. It is based on the creditworthiness of the company's customers, rather than credit history, meaning that even startups or small businesses with limited credit history can use invoice factoring to access the cash they need to grow.
Eligibility Criteria for Invoice Factoring
We prioritize the overall health of your business and the payment history of your customers, rather than focusing solely on credit scores. Since invoices serve as collateral, invoice factoring offers more flexible qualification criteria compared to traditional funding methods. The decision may depend on all or several factors listed below.
- Financial History
- Cash Flow
- Public Records
- Time in Business
- Business Revenue