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.
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.
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