We Turn Your Outstanding Invoices Into Instant Cash For Your Business

Invoice factoring allows you to sell your outstanding invoices to a factoring company in exchange for immediate cash.

This helps improve your cash flow as you don’t need to wait for clients to pay. The factoring company then collects the invoice payments directly from the clients, and once received, remits the remaining balance to you business, minus a small fee.

It’s an effective solution  for bridging the cash flow gap between rendering services and/or selling goods, and actually receiving payments.

1. Invoice Creation:  You deliver goods or services to a client and generate an invoice.

2. Invoice Sale: Instead of waiting for the client to pay, you sell this invoice to a factoring company.

3. Immediate Payment: The factoring company pays you a significant portion (e.g., 80-90%) of the invoice value immediately.

4. Client Payment & Remainder Settlement: Once the client pays your invoice, the factoring company pays you the remaining balance, minus a small fee for their services.

Through this process, you  can quickly access funds tied up in unpaid invoices, improving  cash flow and operational efficiency.

Factoring is designed for B2B businesses experiencing cash flow challenges due to slow-paying customers. It’s especially beneficial for those:

• Struggling to meet operational expenses like payroll and rent because of delayed payments.
• Missing out on growth opportunities due to tied-up funds in outstanding invoices.
• Wishing to avoid taking on debt or diluting equity to finance operations.

Popular industries that often benefit from factoring include:

• Staffing Agencies: Who need to pay staff regularly despite clients having extended payment terms.

• Transportation and Trucking: Where consistent fuel and maintenance costs demand steady cash flow.
• Manufacturing: Where raw material costs and production expenses are continuous.
• Wholesale and Distribution: Who often have a gap between stocking goods and receiving payments.
• Construction: Where project-based work can lead to irregular income streams.
• Service Businesses: Especially those offering B2B services, as they often render services long before invoices are settled, creating cash flow gaps.

In essence, if your business is hindered by the time lag between providing services and getting paid, factoring might be the solution you’re looking for.

Upon receiving all the necessary documentation, setting up your account typically takes between 1 to 3 business days. After this initial setup, when you submit an invoice for factoring, the process is streamlined for efficiency. You can expect to receive funds within a matter of hours. The goal is to ensure that your cash flow is optimized as much as possible, providing you with the financial agility your business needs. 

Navigating the myriad of invoice factoring options can be daunting and time-consuming for businesses. Each factor has its unique criteria, specialties, and terms, which can make finding the right match akin to searching for a needle in a haystack. This is where eFactored adds significant value. We save you the effort of sifting through countless factors by leveraging our extensive knowledge and network to identify the best fit for your specific needs. Our established relationships enable us to negotiate competitive rates and favorable terms that might otherwise be out of reach. With eFactored, you receive personalized guidance, expert matchmaking, and continuous support to ensure the factoring process is as efficient and beneficial as possible, freeing you to concentrate on growing your business. 

When we successfully connect a business with a factoring company, and an agreement is finalized, the factor compensates us directly.
This does NOT affect the cost of services for your business; the rates remain the same as if you approached the factor directly.
In fact, factors are prepared for this and allocate a portion of their revenue for such partnerships.
Opting for eFactored’s free services ensures you benefit from expert guidance and a tailored factoring solution without any additional expense.
Remember, by leveraging our specialized service, you save time, avoid the hassle of vetting factors, and gain access to the best rates and terms available, all for free.