Invoice Financing

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Invoice Financing is an asset-based financing solution that helps you obtain an advance of capital for your unpaid invoices.

What is Invoice Financing?

If you own a business that conducts  business-to-business transactions, invoice financing can be an option for you. Invoice financing allows a business to use their accounts receivable as collateral for their financing. The lender will determine the loan amount based off of your customers and their amount owed to your business. In cases of invoice factoring, the lender would finance your business by buying your business invoices and collecting directly from your customers. With invoice financing, the lender will finance you around 70- 85% of your invoices, while withholding 15-30% until the customer pays. However, while you wait for the customer to pay off their invoice, the lender may charge a small amount of interest per week until the customer pays. Once the customer pays off their invoice to your business, the lender will disburse the remaining 15% minus the accrued interest payment. 

One of the main benefits invoice financing offers to business owners is the ability to get capital without waiting for their customers to settle their accounts. This removes any contingencies, allowing the business to reinvest their cash back into the growth of the company as soon as possible. Invoice financing may also be easier to qualify for since the financing is primarily dependent on your customer invoices. Unlike a standard business loan which would rely on your business’s ability to repay the loan, invoice financing relies on your customer’s ability to pay your business back.


Features

  • Approval Amount: $20,000 – $5,000,000
  • Term Length: 3 – 18 Months
  • Minimum Credit Score: None
  • Annual Revenue: $360,000
  • Time in Business: 1 Year
  • Cost of Capital: 6% – 30%
  • Time to Approval: 24 Hours
  • Time to Fund: 24 Hours

Benefits

  • Same-Day funding
  • Minimal paperwork
  • Helps mitigate cash flow emergencies
  • Easy to qualify for
  • Low cost if your customers pay on time
  • Builds business credit
  • Retain your equity
  • No collateral required (invoices secure the advance)

Types of Invoice Financing

Opportunity Business Loans offers three different types of invoice financing solutions for small and medium-sized businesses. If you don't know which option fits your business needs best, give us a call today. Our team of financial advisors would love to secure the loan that fits your individual wants and needs most.

Invoice Factoring

Invoice Factoring is common for businesses in industries like clothing and manufacturing, where lengthy accounts receivables are normal. Factoring is when the financing company purchases your business’ invoice at a discount. 

The financing company will then be responsible for collecting the payment on the invoices. Your business will typically receive anywhere from 50-90% of the invoice value in a lump sum amounts up front based on the risk profile of your clients. 

Invoice Financing

Invoice Financing is similar to factoring except it isn’t a sale of your accounts receivable. Instead, is works by using your accounts receivable as collateral to get an advance, but you are ultimately responsible for collecting the payments from your clients. 

If your outstanding invoices become delinquent, you will be responsible for the amount the financing company advanced you. This option is usually suitable for businesses that have a strong accounts receivable and either don’t have or don’t want to use other business assets as collateral.

Receivable-Based Line of Credit

A Receivables-Based Line of Credit is based on a percentage of the value of your outstanding receivables. The amount of your credit line will generally be between 80-85% of the value of your outstanding receivables. 

You will pay a pre-negotiated interest rate based on your balance and, when an invoice gets paid, your balance will be reduced. This option is popular for small businesses because it is usually cheaper than invoice factoring or invoice financing. 

Best-Suited Industries and Candidates For Invoice Financing

Below is a list of industries and businesses that could benefit most from invoice financing.

B2B Businesses
Seasonal Businesses
Clothing
Retail
Manufacturing
Real Estate
Healthcare Services and Medical Suppliers
Agriculture
Marketing Services
Business Consulting and Legal Services

Why Partner With Opportunity Business Loans

Opportunity Business Loans offers the most convenient and affordable invoice financing options for small- and mid-sized businesses in a variety of different industries. If you need to free up your cash flow and have outstanding invoices, apply for Invoice Financing today. We would be happy to advance you some capital to cover the day-to-day operational costs of your business.

1.
Flexible Use
There is no limit on how you can use your advanced funds. Whether you are just freeing up cash flow or are investing in new equipment, we've got you covered.
2.
Low Fees
Our Invoice Financing Loans come with low fees to ensure you get the most out of your invoices. This allows you to invest more into your business to boost growth.
3.
Personal Advising
When you partner with Opportunity Business Loans, you will have 24-Hour access to a team of personal financial advisors that can help answer any questions or concerns you might have.
4.
Quick and Easy
Invoice Financing has very little underwriting and documentation requirements. This allows you to apply, get approved, and received the funds within 24 hours!
5.
No Collateral
With Invoice Financing, you do not need to use any physical assets to secure the loan. Depending on which option you choose, you might not need any collateral at all!
6.
Build Credit
Our Lending Programs are designed to make it easy for you to build your business' credit. This will make it easier for you to secure more funding in the future.

Get Business Financing Today

In just 3 easy steps, you can explore your financing options.

Step 1: Just one simple application

Start by filling out our fast application where you can tell us about you and your business. With just one simple application, you'll have access to over a hundred different lenders.

Step 2: Match with the best lender

After submitting your application, our advisors will evaluate your business profile and match you with lenders who can offer the best financing for your business.

Step 3: Select and receive the best financing

Review all your different financing opportunities with an advisor at hand. With so many opportunities at your door, you’ll find the best one to meet all your business needs.

Get Invoice Financing  with Opportunity Business Loans

If your business is looking for invoice financing, apply today with Opportunity Business Loans. We can give you a better chance of qualifying for financing options by connecting you with hundreds of different lenders within our large network. With so many different lenders, you’ll have a greater chance of successfully finding the type of financing that is perfect for your business. When you apply with us today, we’ll do most of the work for you so you won’t need to go from bank to bank or fill out an enormous number of applications. Just fill out one form with us, and over a hundred different lenders will have access to review your business profile and create an offer that’s right for you. Let Opportunity knock on your door today.

Apply Now

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