The amount you’re paid for each invoice will depend on your factoring provider and how their fees are structured as well as other factors such as the credit history of your customers as well as your own company and the type of factoring agreement entered into. Invoice factoring improves cash flow and aids business growth by instantly unlocking money tied up in raised invoices.. However, you can usually expect to see around 80-90% of the value of the invoice paid directly back to you within 48 hours. Once the invoice is paid, any remaining amount (minus the factor’s cut or fee) will be released.
An additional question: Respond to this Question
- How can factoring help my business improve cash flow?
- What are the requirements for factoring?
- Can I pick and choose which invoices are factored?
- How does a factor determine which invoices to accept?
- What's the difference between factoring and invoice discounting?
- What does a typical factoring contract contain?
- What is reverse factoring?
- What are the different types of factoring?