In a perfect world, payment upfront or upon delivery would be standard. But small business owners who operate in the real world know collecting on invoices to keep accounts receivable current is a constant struggle. Meanwhile, tight cash flow is a fact of daily life for a small business.
Speed Up Accounts Receivable Payments
Whether you’re a business owner in an industry with typically long accounts receivable periods or just have a tough time getting paid on time, invoice factoring is a welcomed solution. Instead of being at the mercy of late account receivables, Greenbox Capital enables businesses to collateralize unpaid invoices and receive $5,000 to $250,000 cash business financing.
How Invoice Factoring Works
Greenbox Capital advances as much as 80% of the invoice value, based on the credit risk profile of your clients. Merchants normally receive the remaining percentage due after all of the invoices are paid, minus the factoring fee. The fee on the amount funded will be between 3-5% of the invoice value, based on the strength of your accounts payable and your debtors. Terms are usually 2-3 months, so fees are about 1.5%-2.5% per month.
Client invoices that are ideal for factoring are those with extended credit terms or not more than 60 days past due. Certain businesses like manufacturers and suppliers are expected to offer customers long accounts receivable periods even though the company may not be in the financial position to offer customers those terms. Selling the invoices to a factoring company gets the service provider (payee) most of the payment — up to 80% — immediately and the customers (payers) get to keep their extended credit terms. Invoice factoring is a way to preserve your client relationships while getting paid early and fast.
To get started, complete our application and provide 3 months of bank statements, the invoices to be factored, and contact information for your accounts receivable manager.
Don’t risk paying your bills late because your cash flow is tight. Also, avoid putting unnecessary pressure on your clients to speed up payments or hassle them for invoices that are not seriously past due (within 60 days). When you choose Greenbox Capital as a invoice factoring company, you can trust us to treat your customers professionally. Our goal is to get you the cash you need to keep your cash flow positive and also preserve your client relationships. We are not a collections agency. Collections agencies are not concerned about your cash flow or your client relationships.
Waiting on accounts receivable makes it hard to compete with other businesses who have more cash flow, credit or are getting paid on time. Find out what other small business owners know: Invoice factoring helps keep cash flow positive and protects your credit.
For a free consultation, please complete our application or contact our Merchant Account Service Team.