Invoice factoring is the purchase of a company’s outstanding invoices, where the invoice financing company advances 75-90% of the face value of the total invoice amount once the product or service is delivered to the customer.
It’s like a real-time line of credit for immediate cash flow. The reserve, the 10-25%, is given to the company when their customer pays the invoice.
Accounts receivable factoring is a great way to accelerate cash flow for your business and save you the management time typically tied up with credit analysis and collections. Accord can advance up to 90% of the face value of your invoices, allowing your company to cover its short-term cash needs without waiting weeks or months for customer payments.