One of the most popular ways to quickly infuse a business with cash is to leverage the value of your outstanding receivables. Think of it as a self-liquidating line of credit that avoids long term debt.
What is Invoice Factoring?
Invoice Factoring is not a loan. ClearCoast purchases your business’s accounts receivable as an asset. This transaction creates a working line of capital that is easily accessible to use as needed in your business.
Whether you are just getting started or an established business, there may be times when insufficient cash flow can have a negative impact on your operation and growth. One of the quickest and easiest ways for a business to have access to sufficient cash for operation is to turn the value of your outstanding invoices into working capital.
Invoice Factoring is very beneficial to companies whose clients pay on terms. Instead of waiting 30, 60, or even 90+ days for your clients to pay, factoring allows you to free up cash-flow to use for such things as making payroll or growing your business.
How does Invoice Factoring work?
Once a product/service is completed, you generate an invoice to both your client and ClearCoast. After the invoice is submitted, ClearCoast verifies it then advances you up to 90% of the amount of the outstanding invoice. After initial funding, you will have access to working capital within 24 hours of us receiving an invoice. Your client will then send their payment to ClearCoast when the invoice is due and we will remit the balance back to you, less our fee.
With Invoice Factoring, no debt is added to your balance sheet and the funds are unrestricted, so you have the flexibility to use them how you wish. Unlike traditional lenders, ClearCoast is not concerned with your credit history. Instead, we look at the credit worthiness of your customer, who owes on the invoice.
There are no limits on your monthly receivables, so this process can be repeat as often as you generate an invoice. ClearCoast will also provide back-office support and handle your collections, even for invoices you are not choosing to factor. You save time and money with a third party handling day-to-day accounts receivable.
Why does my business need Invoice Factoring?
If your business is unable to do such things as make payroll or take on more jobs to grow, your outstanding invoices are an asset that can be quickly turned into working capital.
ClearCoast advances you up to 90% of your outstanding invoices in 24 hours, so you receive the capital needed to operate and grow your business.
Fast Funding for Your Business!
Benefits of Invoice Factoring
- Same day approval, with initial funding in 2-5 days
- Working capital is sent within 24 hours of submitting an invoice
- No maximums for monthly receivables
- No debt is added to your balance sheet
- Years in business is not a factor
- Assigned account team for your company
- Deal directly with decision makers
- No equity required, keep 100% ownership of your business
- Save time and money with a third party handling day-to-day accounts receivable