Invoice Factoring | The Complete Guide of Invoice Factoring For Small Businesses

What is Invoice Factoring? 

By selling your invoice to a third party, you can fund cash flow for your business and it is called Invoice factoring.
Invoice Factoring can be provided by banks or Individualistic finance providers.

How does Invoice Factoring Works? 

Invoice Factoring works as a financial product that offers you an opportunity to sell invoices (unpaid) to a third party company. Factoring company buys the invoice for the percentage of their total value and takes responsibility for collecting the invoice payments.

How much does Invoice Factoring cost? 

Factoring company may charge upto 2% for the first 30 days and 0.5 % for every 10 days that the invoice remains unpaid. Fees are often referred to as invoice discounting rates. Some factoring companies offer a flat fee structure where a onetime fee is charged up front.

What is the difference between invoice discounting and factoring? 

Both factoring and invoice discounting are financial services that enable businesses to release the funds tied up in unpaid invoices. Both involve a third party company advancing money against outstanding debtor balances.

The major difference is given below:

With factoring the third party company takes control of the sales ledger, chasing customers for settlement of invoices and managing the credit control of the business. They are also responsible for processing the payment of invoices, meaning that your customers are fully aware of your business contract with a factoring company.
While
With invoice discounting your customers are unlikely to be aware of your relationship with a financing company. You maintain responsibility for the sales ledger, payment chasing and invoice processing.

What are the best platform for Invoice Factoring?

1. M1xchange Invoice Factoring
2. RXIL
3. Atreds

So these are the best platform for Invoice factoring, when it comes to M1xchange Invoice Factoring there is no one in compare of M1xchange, gives you the matchless service ever in Invoice Factoring. To know more about M1xchange Invoice Factoring can also visit at:
https://www.m1xchange.com/corporates.php